A Christmas full of cheer for hodlers tops out above $28,000, amid warnings that Bitcoin is already in regulators’ crosshairs for 2021.
Bitcoin (BTC) has had a week like no other, hitting fresh record highs of $28,400 and staying near the top — what’s next.
As markets return to digest a wild Christmas, Cointelegraph presents five factors set to help with Bitcoin price direction this week.
Gold surges as Trump signs stimulus bull
Markets have been spared a nightmare this week after U.S. President Donald Trump agreed to sign off on Congress’ $900 billion coronavirus stimulus bill.
Set to add a large amount of debt to the Federal Reserve’s existing mountain, the package includes various benefits for businesses but stops short of providing Americans with the same level of direct financial support seen in March.
Trump had said that the low direct payment amount of the second stimulus — $600 against $1,200 last time — meant that he could not condone it, but subsequently changed his mind.
Markets have thus begun a new week on a positive note, with slight gains seen on S&P 500 futures prior to the Wall St. open.
At the same time, gold has returned in style, with data showing that the precious metal is now on track for its biggest one-year gain in a decade.
Versus the end of November, XAU/USD is up $111 or 6.25%.
“As President @realDonaldTrump vetoed just nine bills, the fewest number since Warren Harding, who served just two years, from 1921-1923,” gold bug and infamous Bitcoin naysayer Peter Schiff tweeted as the bill was signed.
“Not since Chester Arthur (1881-1885) has a president who served a full term vetoed fewer bills. You can’t drain the swamp by making it deeper.”
Regulations coming for mainstream Bitcoin
After striking a fresh tone with a wider audience over Christmas with runs to new all-time highs, Bitcoin may soon have to face the music with the establishment, sources warn.
Hitting $28,400 and capping monthly gains of 55%, Bitcoin is now firmly on regulators’ radar as its mainstream appeal heightens. Even for its proponents, the next year may prove to be a challenging time.
With outgoing Treasury Secretary Steven Mnuchin leaving his mark with an attempt to force new laws over noncustodial wallets, his replacement, Janet Yellen, may hardly be an improvement, they say.
“Generally, I think we have had challenges with the Dems — they prefer more regulation, more oversight,” Meltem Demirors, chief strategy officer at digital-asset manager CoinShares, told Bloomberg on Sunday.
“I am a bit worried about the direction things are trending.”
As always in the U.S., the patchwork of political allegiances means that any assault may be tempered by the presence of crypto-friendly figures elsewhere. The new chair of the Securities and Exchange Commission (SEC), Elad Roisman, is considered to be a fan.