Bitcoin reaches highest point of the year before Trump’s inauguration
Crypto enthusiasts are eagerly monitoring Bitcoin’s recent surge towards all-time highs as President-elect Donald Trump’s second inauguration approaches, signaling a renewed focus on cryptocurrencies. Bitcoin, the leading cryptocurrency by market capitalization, has seen a remarkable 13% increase since Sunday, paving the way for its most significant weekly gain since the week of the presidential election in November. Despite experiencing declines in three out of the past four weeks, Bitcoin is now trading at around US$105,076, rising by 4.9% as of 3.44 pm in New York.
Market experts attribute Bitcoin’s recent rally to the upcoming inauguration of President Trump, who has adopted a more positive stance on cryptocurrencies. Trump, previously known for his skepticism towards crypto, is set to issue an executive order highlighting cryptocurrency as a policy priority and granting industry stakeholders a meaningful role in his administration, according to sources cited by Bloomberg. This shift in attitude has instilled optimism among crypto investors, driving the market upwards.
The resurgence in the cryptocurrency sector mirrors the broader recovery in riskier assets following positive US inflation data, which has reignited expectations of further interest rate cuts by the Federal Reserve. Jake Ostrovskis, a trader at the crypto market-making firm Wintermute, highlighted the impact of recent economic data on the crypto market. He emphasized how the deviation from expected producer and consumer price index figures has alleviated general macroeconomic concerns, enabling traders to refocus their attention on imminent crypto-specific developments.
Ripple Labs’ token XRP experienced a notable milestone by reaching a record high of US$3.40 amid hopes of a resolution to the company’s prolonged legal battle with the US Securities and Exchange Commission. However, Ostrovskis cautioned that market signals from the options market suggest heightened volatility leading up to the end of January, possibly in anticipation of significant market movements coinciding with Monday’s presidential inauguration.
Overall, the anticipation surrounding Trump’s forthcoming executive order and the broader economic context have fueled a resurgence in the cryptocurrency market, with Bitcoin leading the charge towards record highs. As the crypto community awaits further developments, the prospects for digital currencies appear increasingly promising in light of evolving government attitudes and market conditions.
