Key Takeaways
- Bitcoin surpassed $100,000 ahead of President-elect Trump’s inauguration, with a 15% weekly gain.
- Market sentiment is buoyed by expectations of a Bitcoin reserve and crypto-friendly executive orders under Trump’s administration.
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Bitcoin surged past the $100,000 mark early Friday, fueled by optimism as traders prepare for President-elect Donald Trump’s inauguration on January 20.
The largest crypto asset by market cap gained over 5% in the last 24 hours, rising from an intraday low of $97,500 on Thursday to over $103.5K at press time.
The week began with Bitcoin dropping below $90,000 due to stronger-than-expected labor data. However, it rebounded after favorable CPI figures were released on Wednesday.
Comments from Federal Reserve Governor Christopher Waller, suggesting multiple interest rate cuts in 2025, further fueled the recovery.
The anticipation of Trump’s pro-crypto policies has further fueled bullish sentiment, with Bitcoin now aiming to breach its all-time high of $108,000, achieved in mid-December.
While optimism is high, some experts caution against overexuberance.
“I think that a lot of the crypto industry is getting a little ahead of itself, believing that the Trump administration is immediately going to supercharge the market,” said Boris Bohere, CEO of Blockchain Tech Consortium.
Bohere added that while there might be excitement on Trump’s first day in office, a legitimate and prolonged bull market would require innovative companies to return their operations and investments to the US.
Conversely, a Bloomberg report revealed that Trump may issue an executive order declaring crypto a national priority and establishing a crypto advisory council, further improving the chances of a continued upward trend for Bitcoin.
Additionally, Polymarket indicates a 43% probability that Trump will create a strategic Bitcoin reserve within his first 100 days in office, further boosting market sentiment.
Financial investor Fred Krueger added to the speculation in an X post yesterday, suggesting that a Bitcoin strategic reserve will be announced on Monday as part of Trump’s numerous planned executive orders.
Krueger noted that many Trump donors would be deeply disappointed if an executive order addressing a strategic Bitcoin reserve is not included.
The broader crypto market has also seen gains, rising 2% overall according to Coingecko data.
Altcoins have seen double-digit gains, with OKX’s native token OKB up 22%, Thorchain’s native token RUNE gaining 18%, and Litecoin is rising on news of an ETF filing, as Nasdaq submitted a 19b-4 form to the SEC on Thursday.
Data from Coinglass revealed $272 million in total liquidations over the past 24 hours, comprising $167 million in short liquidations and $106 million in long positions.
As Bitcoin reclaims the $100K territory, traders eagerly await Trump’s inauguration and his remarks on crypto.
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