With Joe Biden having anointed Ms Yellen as his treasury secretary, her anti-crypto sentiment has made some investors nervous that crippling regulations are in store for the surging digital currency. However, speaking to Express.co.uk bitcoin pioneer Max Keiser said: “Bitcoin has achieved escape velocity from regulators. There is literally nothing they can do to stop it that doesn’t require them to print more fiat money which only makes the demand for bitcoin, and price, go higher.
“We are already seeing defections.
“Regulators in various countries are defecting to bitcoin.
“It’s like the fall of the Soviet Union in 1991, except this time it’s the fall of the global central banks.”
Mr Keiser added: “Bitcoin is playing 4D chess, regulators are playing checkers.”
Higher inflation and increased amounts of monetary stimulus from the US Federal Reserve will only increase bitcoin’s attractiveness as a store of value.
Ms Yellen was the Federal Reserve chair from 2014 to 2018 and has recently stated that she wants the US Congress to spend more, stating that “the economy needs the spending”.
The fact that she is less concerned about debt and inflation will have a positive effect on the price of bitcoin.
Her aggressive monetary and fiscal policies will cause many investors to become concerned about inflation of the dollar.
She said: “It is not a stable store of value and it doesn’t constitute legal tender.
“It is a highly speculative asset.”
Speaking to Express.co.uk, Jesse Cohen, senior analyst at uk.Investing.com, said: “It’s been a blockbuster year for bitcoin, with prices more than tripling this year thanks to growing acceptance of crypto as an asset class of its own.”
However, the analyst had concerns about possible regulation from the newly appointed Ms Yellen.
He added: “But with bitcoin moving into the mainstream and capturing greater attention in the year ahead, it will likely draw further scrutiny from regulators in the United States and Asia.
“While many expect the bitcoin rally to continue in 2021, I’m more concerned with what the Biden administration could mean for cryptos.
“Incoming Treasury Secretary Janet Yellen in the past has warned investors over bitcoin during her time as Fed Chair, calling it a highly speculative asset and not a stable store of value.
“I expect bitcoin to remain highly volatile to the downside in the new year, given the potential for more scrutiny and tighter regulation.
“That should see prices fall back from their record highs, with the prospect of increased regulation being the most important factor affecting bitcoin in 2021.”
The current surge in the value of bitcoin is being driven in no small part by certain Wall Street veterans such as Paul Tudor Jones and Stanley Druckenmiller.
Also, companies like MicroStrategy Inc. and Square Inc. have moved cash reserves into bitcoin in search of better returns than that delivered by near-zero interest rates.