Crypto Markets Have Benefited From a Positive Environment Since U.S. Election: Citi

Bitcoin (<a href="https://www.coindesk.com/price/bitcoin/ " target="_blank">BTC</a>) reached an <a href="https://www.coindesk.com/markets/2024/12/05/bitcoin-hits-milestone-vs-gold-as-cycle-pattern-flags-120-k-by-year-end-van-straten" target="_blank">all-time high</a> supra $100,000 earlier this week arsenic a fig of tailwinds fueled a post-U.S.-election rally successful the world's largest cryptocurrency, Citi (C) said successful a probe study connected Thursday.

"The information of integer asset-friendly Paul Atkins to seat the SEC provided the last boost," that saw bitcoin interruption done $100,000 to grounds highs, analysts led by Alex Saunders wrote.

The cryptocurrency was trading astir $98,500 astatine the clip of publication.

Bitcoin continues to beryllium bolstered by exchange-traded money (ETF) flows and different buying arsenic adoption grows, the slope noted.

The macro situation is besides constructive for integer assets. Loose fiscal conditions and resilient maturation are affirmative for crypto tokens, Citi said.

"Other integer assets apt person much to summation from a much permissive regulatory environment," the authors wrote, noting that bitcoin's dominance has fallen.

Citi said it hasn't seen a notable emergence successful on-chain activity.

Over the longer term, the slope said a network's inferior oregon worth volition beryllium linked to its usage, macro correlations and accumulation costs.

A new, much benign regulatory strategy could unlock much and wider usage cases for blockchain assets, the study added.

More permissive crypto policies should broaden the plus class, Citi said, but bitcoin, which has already been classified arsenic a commodity, and has some a spot ETF and a futures contract, has little to summation than different tokens.

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