Bitcoin bounces back above $98,000 after SEC announces Gary Gensler to step down

Bitcoin (BTC-USD) surpassed $98,800 to hit a new record Thursday after the Securities and Exchange Commission announced Chairman Gary Gensler will step down effective January 20, the day Donald Trump is scheduled to be sworn into the White House.

The token had crossed the $98,000 threshold in early trade before paring gains as investors remained optimistic about pro-crypto policies from the incoming Trump administration.

Bitcoin is up about 40% since Trump’s presidential victory earlier this month and has hit several milestones as investors eye targets of $100,000.

Reports of President-elect Donald Trump’s transition team discussing the possibility of a first-ever role for cryptopolitics also sent the token higher over the past 24 hours.

Bitcoin has been a key component of the Trump trade, as Trump has promised to explore crypto-friendly initiatives, including the creation of a national bitcoin repository and the replacement of SEC Chairman Gary Gensler.

Read more: Bitcoin clears another record: Is it a good time to invest?

Digital asset firm Galaxy Digital (GLXY.TO, BRPHF) CEO Mike Novogratz told Yahoo Finance on Wednesday that whoever Trump picks to head the SEC will be positive toward bitcoin given the “overall pro-crypto attitude” of the newly elected president’s team.

“All the guys around the table like our space. They believe in the digital asset world. They believe in blockchains and bitcoin, and so the whole energy of this administration is going to be so different from the Elizabeth Warren, Gary Gensler era.” Novogratz said.

The move higher in bitcoin this week also comes on the heels of a Financial Times report that says Trump Media & Technology Group ( DJT ) is in advanced talks to acquire crypto trading firm Bakkt ( BKKT ), a tie-up that could further fuel for initiatives within the sector.

Meanwhile, bitcoin spot ETFs have also seen massive inflows in recent weeks.

As Yahoo Finance’s David Hollerith reported earlier this week, BlackRock’s spot bitcoin ETF (IBIT) saw its assets increase by $13 billion in the wake of Trump’s presidential victory, according to Yahoo Finance data. This pushed assets in the iShares Bitcoin Trust to over $40 billion just 10 months after launch.

Options linked to IBIT also began trading on the Nasdaq on Tuesday, pushing further trading activity into the crypto space.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

Click here for an in-depth analysis of the latest stock market news and events that move stock prices

Read the latest financial and business news from Yahoo Finance