Investing.com — Bitcoin rallied on Tuesday, extending recent gains and re-entering six-digit value territory after the new year, with markets now eyeing the upcoming inauguration of President-elect Donald Trump.
Sentiment is also supported by MicroStrategy Incorporated (NASDAQ: ) buying another 1,070 Bitcoin, further cementing its status as the world's largest crypto company.
rose 2.1% to $101,711.6 at 01:02 ET (06:02 GMT), briefly rising from $102,000 earlier in the day.
The broader crypto markets have also advanced in tandem with Bitcoin.
Trump's policies are in focus as they are officially launched
Crypto traders were directly focused on what Trump's policies will involve in the crypto industry, since he has vowed to make America the “crypto capital” of the world.
Trump has appointed several crypto-friendly candidates to key cabinet and executive positions, most notably attorney Paul Atkins to lead the Securities and Exchange Commission.
But uncertainty about Trump's broader economic policies grew this week after the President-elect denied a Washington Post report that his administration would impose tougher trade tariffs than previously signed.
Trump has vowed to impose rising tariffs on many trading partners, especially China. Such a situation is likely to increase pressure on global trade and pressure on economic growth.
Fears of a trade war are also expected to dampen risk appetite, which could reduce crypto's appeal.
Bitcoin is expected to benefit from Trump's inauguration on January 20, but could face consolidation amid a lack of guidance later in the month.
MicroStrategy buys a lot of Bitcoin
Sentiment towards Bitcoin was also boosted by MicroStrategy adding more than 1,000 tokens to its Bitcoin hoard.
The stock is widely considered a proxy for Bitcoin, and is on a stellar run-up to 2024, already outperforming Bitcoin in percentage terms.
Benchmark analysts said the stock's outlook remained positive, praising its plan to grow its holdings of Bitcoin faster than reducing its share.
Crypto price today: altcoins track Bitcoin rebound
Broad crypto prices have risen in tandem with Bitcoin. World no.2 crypto lagged, falling slightly to $3,674.35, while no.3 crypto in the world rose 1.2%.
and moved in a flat-to-positive range, while among meme tokens, they rose almost 2%.
Most altcoins have been sitting on stellar gains in 2024, as markets are betting that friendly US regulations will help spur more value in crypto beyond Bitcoin.