LIVE MARKETS-Deutsche Bank says Trump victory could boost bitcoin
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DEUTSCHE BANK SAYS TRUMP VICTORY COULD BOOST BITCOIN
Deutsche Bank crypto analysts cited the possibility of a new "innovation-friendly" approach to regulation in the U.S. as a potential driver of further bitcoin gains.
But a pullback last week from spot bitcoin ETFs "suggests a shift in investor sentiment and raises questions about the sustainability of the recent rally", Deutsche Bank said.
Bitcoin surged above $100,000 for the first time in December, helped by the nomination of pro-crypto Paul Atkins to run the SEC.
"The forthcoming appointment of Paul Atkins, a deregulation advocate, as SEC Chair signals a shift towards an innovation friendly approach, prioritizing clear regulatory guidelines for digital asset markets and reducing enforcement actions," the analysts said in a note.
Still, bitcoin's price could be hurt if U.S. rates are kept higher for longer than expected, or if "the Trump administration's promises to adopt and legitimize crypto fall short of market expectations," Deutsche Bank said.
There are already signs of emerging caution: bitcoin's price has cooled back to around $96,400, down from its December peak above $108,000, and last week U.S. spot bitcoin ETFs saw their second-largest outflow ever, with $583 million pulled out in a single day.
(Elizabeth Howcroft)
FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:
BROADER MARKET ON THE BACK FOOT, BUT MIGHT BULLS CATCH A BREAK? CLICK HERE
BONDS ENTER FIFTH YEAR OF BEAR MARKET: TIME TO BUY? - CLICK HERE
UK ON INVESTORS' RADAR DESPITE NEW YEAR SELL-OFF - MS - CLICK HERE
WALL STREET POISED TO BUY MORE EUROPEAN BANK SHARES - UBS - CLICK HERE
EUROPEAN SHARES RISE AFTER U.S. TARIFF PLAN TOUTED - CLICK HERE
EUROPE BEFORE THE BELL: FUTURES JUMP, U.S. TARIFF PLANS IN FOCUS - CLICK HERE
BONNE CHANCE, BAYROU - CLICK HERE
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