Bitcoin made a strong comeback yesterday, rallying to $96,000 after a week of downward pressure that saw it drop to as low as $90,000.
This increase is attributed to the optimism surrounding the upcoming administration of US President-elect Donald Trump, who has promised to enact pro-crypto policies immediately after taking office on January 20.
According to a report by the Washington Post, sources close to the Trump administration have said on day one that they plan to issue crypto-related executive orders. These orders are expected to address key issues such as the alleged “debanking” of crypto companies and the repeal of the controversial SAB 121 policy that restricts banks from providing services to crypto firms.
Crypto billionaire and Galaxy Digital founder Mike Novogratz previously described SAB 121 as a significant regulatory hurdle put in place during the Biden administration that could be quickly removed during the Trump era.
Trump’s willingness to prioritize crypto reforms is reportedly due to lobbying efforts from Silicon Valley moguls, including Marc Andreessen, co-founder of venture capital giant Andreessen Horowitz. The news has boosted investor confidence in a regulatory environment more conducive to the growth of cryptocurrencies.
Adding to the bullish momentum, a favorable court ruling for Coinbase against the Securities and Exchange Commission (SEC) coincided with news of Trump’s crypto plans, further boosting market sentiment.
However, the Bitcoin price has encountered resistance amid broader market concerns. Signs of a strong U.S. economy have dampened hopes that the Federal Reserve will cut interest rates further, which typically boosts investment in riskier assets like cryptocurrencies. These macroeconomic fears have weighed on Bitcoin prices since mid-December, prompting some investors to remain cautious.
Despite mixed sentiment, analysts remain optimistic about Bitcoin’s outlook, with a report by crypto research firm 10x Research suggesting that softer-than-expected inflation data could spark a new rally as the Federal Reserve considers its next steps on interest rates.
Arthur Azizov, CEO of crypto payment provider B2BInPay, is even more bullish. “Bitcoin could reach $100,000 to $102,000 next month,” Azizov said, citing Trump’s pro-crypto policies and growing investor confidence in potential institutional inflows.
*This is not investment advice.
