Cash News
Crypto stocks enjoyed a short-lived rally before reversing direction Thursday on the heels of a push from bitcoin (BTC-USD) to a record high above $100,000. That record was fueled by news from President-elect Donald Trump that he would nominate crypto-friendly Paul Atkins to lead the US Securities and Exchange Commission (SEC).
Bitcoin traded as high as $103,500 early Thursday, but fell back below the $100,000 level later in the day.
Coinbase (COIN) stock jumped as much as 5% Thursday morning, but ended the trading day down over 3%. Despite the loss, shares are up over 80% for the year.
MicroStrategy (MSTR) — a software firm that’s the largest corporate investor in bitcoin and has adopted the cryptocurrency as its primary Treasury reserve asset — saw its stock rise over 8% before reversing direction. Bitcoin miner Riot Platforms (RIOT) was up more than 6% early Thursday but also quickly changed course. MicroStrategy and Riot dropped nearly 5% by the market close.
Oppenheimer executive director and senior analyst Owen Lau had cautioned investors on bitcoin reaching the record level in a recent interview with Yahoo Finance.
“No. 1 advice: Just be careful when you hit the $100,000 level,” Lau said. “There may be some selling pressures and people looking for the next breakout level.” As Yahoo Finance’s David Hollerith reported, Atkins favors cryptocurrency regulations that don’t block innovation or impose what he views as unnecessary oversight.
Atkins is set to replace Gary Gensler, who led a major crackdown on the industry at the SEC. The agency regularly pursued actions against crypto fraud, from small fines against unregistered brokers of crypto assets to major cases against FTX, Coinbase, and Binance.
Supporters of Gensler’s SEC believed it was high time the industry faced many of its players’ shady dealings, while crypto proponents — even within the agency — said the aggressive campaign against the sector was stifling innovation.
Trump’s election has been seen as a major positive for the crypto sector.
The president-elect attended the annual bitcoin conference in July during his campaign. His opponent, Kamala Harris, also expressed support for the sector.
In addition to Atkins, other members of Trump’s Cabinet are seen as pro-crypto, with Vice President-elect JD Vance and several of Trump’s presidential nominees having in the past disclosed or discussed exposure to cryptocurrencies through asset ownership or business interests.
Trump’s transition team is reportedly discussing the potential creation of a new White House role for a “crypto czar” to oversee bitcoin policy.