As excitement builds for Donald Trump’s inauguration on Monday, Bitcoin (BTC) surged to an impressive $104,254 on Friday, marking a major milestone for the crypto market. This rally comes as traders and investors eagerly anticipate the incoming administration’s pro-crypto policies, which could reshape the financial landscape in the United States.
A Crypto-Focused Presidency
Reports suggest that President-elect Trump is planning to declare cryptocurrency a “national priority” through an executive order. The proposed directive, expected to be announced soon after the inauguration, may encourage U.S. government agencies to collaborate with the crypto industry and establish a national Bitcoin reserve. Additionally, Trump is reportedly considering forming a crypto advisory council to guide policymaking in the sector.
This move is seen as a sharp pivot from the regulatory challenges faced under the previous administration, during which firms like Coinbase and Ripple Labs grappled with lawsuits from agencies like the Securities and Exchange Commission (SEC). The crypto community hopes that Trump’s presidency will foster a more supportive environment for innovation and investment.
Market Sentiment Soars
Bitcoin’s rally has pushed the overall cryptocurrency market capitalization to $3.78 trillion, with a 4% increase in the last 24 hours. The anticipation of Trump’s crypto-friendly policies has lifted market sentiment, with key players expressing optimism. Kara Calvert, vice president of U.S. policy at Coinbase, said, “What I think Donald Trump is going to do is signal that the United States is back and ready to lead in this industry.”
Meanwhile, early Bitcoin investor Frank Chaparro added, “This shift in tone signals that banks will now feel more confident engaging with crypto, reversing years of restrictive guidance.”
Concerns Over a Pump-and-Dump Scheme
Despite the enthusiasm, some experts have raised concerns about potential market manipulation. Professors Jeffrey Funk and Gary Smith warn that the government’s potential move to create a Bitcoin stockpile could inadvertently fuel a pump-and-dump scenario. In such schemes, prices are artificially inflated before the assets are sold off, leaving late investors with losses. They argue that massive government purchases of Bitcoin could drive prices higher, creating a speculative bubble.
What’s Next for Bitcoin?
As of now, Bitcoin trades at $104,549, with open interest in BTC futures surpassing $69 billion. The coming days will be pivotal in determining the long-term impact of Trump’s policies on the crypto market. Whether this marks the beginning of a sustainable rally or a volatile pump-and-dump event remains to be seen.
For now, the crypto world watches closely, with hopes pinned on a new era of innovation and growth under Trump’s administration.