Bitcoin has surged to $96,000, marking a robust comeback after a week-long slump that saw prices dip as low as $90,000 on Monday. The rally is largely attributed to incoming U.S. President Donald Trump’s announcement of favorable cryptocurrency policies set to take effect immediately after his inauguration on January 20.
🌟 Trump’s Crypto-Friendly Policies
According to the Washington Post, Trump plans to issue executive orders addressing key crypto issues, including reversing the controversial SAB 121 policy, which has restricted banks from servicing cryptocurrency firms. This policy change is anticipated to unlock new growth opportunities for the crypto sector.
Sources close to the administration suggest Trump’s stance is heavily influenced by prominent Silicon Valley figures, including venture capitalist Marc Andreessen. This budding alliance between the tech and crypto sectors has significantly bolstered market sentiment.
⚖️ Coinbase’s Legal Victory
Adding to the bullish momentum, Coinbase secured a favorable court ruling against the Securities and Exchange Commission (SEC) on the same day the Washington Post published the news. This development further strengthened investor confidence in the cryptocurrency market.
🌍 Economic Headwinds and Market Sentiment
Despite the positive news, some scepticism remains. Analysts point to potential challenges in passing crypto-related legislation early in Trump’s term. Additionally, a strong U.S. economy and fears of delayed Federal Reserve interest rate cuts have dampened the overall optimism. Lower interest rates typically encourage investment in riskier assets like cryptocurrencies, making the Fed’s decisions critical to Bitcoin’s trajectory.
📈 Analysts’ Price Outlook
Experts remain bullish on Bitcoin’s potential. Crypto research firm 10x Research notes that a softer inflation reading could trigger further rallies. Meanwhile, Arthur Azizov, CEO of B2BInPay, predicts Bitcoin could break the $100,000 barrier as early as next month, with a potential peak at $102,000.
📊 Market Maker
In the past 24 hours, Bitcoin has climbed 4.4%, reaching $96,531. Ethereum has followed suit, rising 4.6% to $3,199. These gains highlight growing optimism in the broader cryptocurrency market.
🏆 Conclusion
With Trump’s pro-crypto agenda and improving regulatory clarity, Bitcoin appears poised for significant growth. While challenges remain, the market’s response underscores the transformative potential of favorable government policies in shaping the future of digital assets. 💎