Bitcoin Surges to $103K Amid S&P 500 Correlation & SEC Shakeup

Bitcoin (BTC) has recently shown a stronger connection with the S&P 500, as highlighted by Santiment, a market intelligence platform. 

After the initial surge known as the “Trump Pump” in November, Bitcoin’s price has stabilized and now tracks closely with traditional stock market trends. Many cryptocurrency traders have remarked that Bitcoin is behaving like a “high-leveraged tech stock,” given its similar price movements to the broader equity market.

As Bitcoin’s price continues to align with the S&P 500, market participants are keeping an eye on whether this trend will hold. If Bitcoin starts to break away from this correlation, it could signal a shift in market behavior. 

Source: Santiment

Historically, when Bitcoin decouples from traditional markets, the crypto sector has seen strong growth, with prices generally trending higher during such periods.

Bitcoin Price Update: Market Performance

Bitcoin was trading at $101,937 at press time, reflecting a 5.53% increase in the past 24 hours and a 6.78% rise over the past week. The price has reached new highs, surpassing $103,000, which is a record for the crypto. Despite the strong upward momentum, the market remains cautious due to certain technical indicators.

The Relative Strength Index (RSI) is at 71.79, indicating that Bitcoin might be nearing overbought levels. This could suggest that a short-term pullback or consolidation is possible, although the overall market sentiment remains positive.

Additionally, the Moving Average Convergence Divergence (MACD) indicator is in positive territory, suggesting that the bullish trend could continue if Bitcoin holds its support levels.

Source: TradingView

Paul Atkins Appointed as New SEC Chair

Bitcoin’s price surge is also tied to the recent announcement of Paul Atkins’ appointment as the new US SEC Chair. On December 4, former President Donald Trump nominated Atkins, a known advocate for crypto, to replace Gary Gensler. This has been received positively by the crypto community, which hopes that Atkins’ leadership will lead to more favorable regulations for digital assets.

Ripple CEO Brad Garlinghouse expressed confidence in the new appointment, stating that Atkins would bring “common sense” to the SEC. US Senator Cynthia Lummis also praised the decision, calling it a significant win for the crypto sector. 

Paul Atkins' nomination as SEC Chair is a huge win for financial innovation. President Trump promised to have the most pro-digital asset admin in U.S. history, and I am looking forward to working with both of them to promote innovation and make our economy strong again

— Senator Cynthia Lummis (@SenLummis) December 4, 2024

Ripple’s Chief Legal Officer, Stuart Alderoty, noted that the trio of Atkins, Hester Peirce, and Mark Uyeda could restore balance to SEC policies and improve investor protection for digital assets.

Despite the optimism, there are still questions about how Atkins will approach crypto regulation once he takes office. Furthermore, speculation continues about whether Atkins will work with the US government to establish a Bitcoin reserve.