Bitcoin Soars Past $104,800: Is a Pro-Crypto Trump Administration the Game Changer?

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The recent rise in the value of the cryptocurrency is due to speculation that President-elect Donald Trump may soon issue executive orders focusing on crypto-related matters, following his inauguration on January 20th.

2025 has seen Bitcoin climb approximately 10% so far, building on its remarkable 120% increase in 2024. This raises questions among investors about whether this trend might propel Bitcoin to new record heights.

The data indicates that Bitcoin is currently trading at approximately $104,800 on Binance, which represents a rise of over 4% compared to the previous day. Operators like Coinbase and Robinhood have also experienced gains, with their shares rising around 5% and 3%, respectively. Experts in the industry suggest that the optimism stems from speculation that the Trump administration may swiftly introduce policies that are advantageous for the cryptocurrency market.

A National Bitcoin Reserve

It seems that one significant factor fueling the surge is the speculation from Thursday about Donald Trump possibly forming a consultative body for cryptocurrency assets, which would allow industry players to interact directly with his administration. Furthermore, talks about setting up a Bitcoin reserve by the U.S. government, similar to existing oil and gold reserves, have added to the hype. Many prediction platforms indicate a high likelihood of the creation of a U.S. Bitcoin reserve by 2026, and some even suggest that this initiative could be implemented within Trump’s initial 100 days in office.

One of the U.S. politicians spearheading the Strategic Bitcoin Reserve, Senator Cynthia Lummis, has been putting in long hours on the related bill. Today she shared a picture on X, captioned, “Putting in a lot of effort to push the Strategic Bitcoin Reserve and comprehensive digital asset legislation through to completion.

Trump, who was initially hesitant towards digital currencies, has now endorsed them, even suggesting that the U.S. could lead globally in crypto. This change of heart has ignited a surge among smaller cryptocurrencies as well, with Litecoin seeing a 20% increase within just two days. The crypto community is planning to organize a “First Crypto Ball” as a gesture of welcome to the new administration and to push for the fulfillment of campaign promises in this area.

Upcoming Catalysts and Potential Risks

Currently, Bitcoin is nearly at $104,800, leading many experts to predict that it may soon reach its previous record high of approximately $108,372.55. However, technical analysis indicates that Bitcoin might experience temporary drops due to being overbought. As the inauguration approaches, investors will closely monitor significant U.S. economic data releases like jobless claims, consumer sentiment, and manufacturing surveys. Such reports could potentially alter Federal Reserve rate forecasts, which in turn could impact Bitcoin’s future path.

Despite some lingering doubts, the general feeling among traders remains positive. The possibility of a crypto-friendly executive order, potentially issued by Trump on his inauguration day, has sparked optimism that regulatory certainty and favorable policies could boost Bitcoin’s mainstream acceptance even more. If the market continues to react positively to these advancements, new peak values might be imminent for XRP, Bitcoin, and the entire cryptocurrency sector.

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2025-01-18 14:02