Bitcoin Price Soars Again: What’s Driving the Rise? What Do Analysts Think?
Bitcoin, the world's largest cryptocurrency, has started an upward movement again today. So what are the reasons for the rise and what are the evaluations?
As expectations grow for pro-crypto President Donald Trump to be inaugurated for a second term, Bitcoin is gaining momentum, poised for its biggest weekly gain since the US election week in November.
The world’s largest cryptocurrency by market cap is up nearly 12% since Sunday, to $104,668, for a 4.96% gain on the day. The rally comes after a mixed performance that has seen Bitcoin decline in three of the last four weeks. BTC previously reached an all-time high of $108,315 in December.
“The market is now pricing in Trump taking office and Trump being bullish on crypto,” said Zaheer Ebtikar, founder of crypto fund Split Capital.
Trump plans to issue an executive order prioritizing BTC as part of his administration’s policy agenda, according to Bloomberg. The order is expected to prompt a more inclusive dialogue with industry leaders and signal a shift from his previously skeptical stance on cryptocurrencies.
This week’s Bitcoin rally coincided with a broader rally in risk assets as inflation concerns in the U.S. eased. Weaker-than-expected Producer Price Index (PPI) and Consumer Price Index (CPI) data renewed investor optimism for further rate cuts from the Federal Reserve.
“The lower PPI and CPI have removed macro concerns, allowing investors to focus on crypto-specific catalysts,” said Jake Ostrovskis, a trader at Wintermute, a crypto market-making firm.
But Ostrovskis warned of potential volatility in the market as Trump’s inauguration approaches. “The options market is showing that traders are betting on higher volatility in late January, which means the market could be running ahead of Monday’s inauguration,” Ostrovskis added.
*This is not investment advice.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum surges above $2,900 as Eric Trump encourages buying
US Spot Bitcoin ETFs See $5B Inflows in January, Could Surpass $50B in 2024: Bitwise CIO
Hougan noted that spot Bitcoin ETFs absorbed $4.94 billion in January alone, an annualized pace of approximately $59 billion.
Stablecoin Transaction Volume Reached $27.6 Trillion in 2024
The trade war is here
Tariffs issued on three of the US’s biggest trading partners sent global markets into a tailspin