Political Turmoil In South Korea Impacts Bitcoin Prices As Market Eyes Trump’s Policies

Despite a notable pause in its upward trend, Bitcoin (BTC) is approaching the landmark $100,000 mark, fueled by expectations of supportive policies for the sector from US President-elect Donald Trump.

On Tuesday, the largest digital asset traded above the key $95,000 mark, acting as support for the past 24 hours. This reflects a remarkable surge of over 40% since Trump’s election victory on November 5.

Trump’s administration is expected to reverse the Biden administration’s stringent regulations on digital assets, which could significantly alter the landscape for cryptocurrencies in the US. 

The Republican party is already positioning crypto-friendly candidates to lead key regulatory bodies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

Additionally, discussions within Trump’s transition team have included the potential creation of a dedicated White House position focused on digital-asset policy.

President-elect Trump has voiced ambitions to establish the US as the global hub for cryptocurrency, even proposing the concept of a national Bitcoin reserve. However, analysts express skepticism about the practicality of this idea. 

Jaret Seiberg from TD Cowen noted that while Trump may advocate for a Bitcoin reserve in public forums, it would require significant political capital to implement, especially given his firm stance on maintaining the US dollar’s status as the world’s primary currency.

Crypto advocate Paul Atkins is considered a strong candidate to replace outgoing SEC chairman Gary Gensler. The current chair officially announced his resignation last week, effective January 20, the day of Trump’s inauguration.

Gensler has played a key role in enforcing compliance in the digital asset space, especially after a tumultuous 2022 that saw a significant market downturn and significant financial losses for investors following the implosion of the once Sam Bankman-led FTX exchange.

Bitcoin and other cryptocurrencies, such as XRP and Dogecoin (DOGE), have experienced notable price discrepancies in South Korea due to local political instability. 

Following the imposition and subsequent rescinding of martial law by President Yoon Suk Yeol, Bitcoin’s price on South Korean exchanges dipped below $72,000 at one point, reflecting heightened risk aversion among investors.

However, the overall cryptocurrency market has seen a staggering increase since Trump was declared president-elect, with total market capitalization rising by approximately $1.3 trillion, according to data from CoinGecko. 

At the time of writing, BTC is trading at $95,840, posting slight losses of 0.2%, but halting the upward trend seen over the past few months. Over the past 8 hours, attention has shifted to altcoins such as BNB, which hit a new record high, and XRP, which is trading just 20% below its all-time high. 

Featured image from DALL-E, chart from TradingView.com