Crypto markets benefit from Trump’s choice of SEC Chair

Bitcoin price jumped from $95,500 to $98,800 on Wednesday, rapidly approaching the $100,000 milestone. If the BTC price declines, support can be found at $93,500, while resistance may be encountered at the psychological level of $100,000. 

Ethereum price also surged on Wednesday, rising to $3,880, its highest value since May. If Ethereum's price declines, it may encounter support near $3,450, while if it increases, resistance may be encountered near $4,000.

Bitcoin has been flirting with the key $100,000 level for the past few weeks. US President-elect Donald Trump has openly declared his support of crypto markets, announcing that he will make the US ‘the crypto capital of the planet’. Growing expectations that the new government will adopt a pro-crypto regulatory and fiscal policy have been boosting crypto markets, especially since Donald Trump announced plans to accumulate a national Bitcoin stockpile. 

On Wednesday, reports that Trump plans to appoint Paul Atkins as the new Chair of the Securities and Exchange Commission (SEC) boosted crypto markets. Atkins is currently the CEO at Patomak Global Partners and has served as SEC commissioner in the past. Atkins’ appointment raised market expectations of less stringent legislation for cryptocurrencies, propping up crypto markets.

Geopolitical concerns are promoting a risk aversion sentiment, however, lowering the appeal of high-risk assets such as cryptocurrencies. A 60-day ceasefire between Israel and Lebanon was officially declared last week. Reports, however, that Israel has been repeatedly violating the ceasefire, reduced risk sentiment this week. Israel threatened to attack the Lebanese state if its truce with Hezbollah collapses on Tuesday, reigniting geopolitical concerns. Meanwhile, a civil war has broken out in Syria, further destabilizing the region.

Concerns over Trump’s proposed tariffs, however, dampened risk sentiment on Monday. Trump stated on social media over the weekend that BRICS nations would face 100% tariffs if they created a new currency to replace the dollar. BRICS is an intergovernmental organization comprising nine countries – Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. Trump’s threats raised concerns that the incoming US President is going to start multiple trade wars, boosting the dollar and putting pressure on gold prices. Trump also stated last week that his administration will impose an additional 25% tariff on imports from Canada and Mexico, with an additional 10% to the 60% already announced during his election campaign on Chinese goods. 

Cryptocurrency prices are also affected by central banks’ interest rates. High interest rates are restricting economic growth, putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. Market odds of a December rate cut rose from 75% to 79% on Wednesday, propping up cryptocurrencies. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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