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Bitcoin rejoined a cryptocurrency rally on Friday amid reports that the president-elect Donald Trump he could issue an executive order making cryptocurrencies a national priority on the first day of his new term.
According to Coin Metrics, the price of the flagship cryptocurrency was recently higher by over 4% and amounted to $104,780.10. The broader cryptocurrency market, as measured by CoinDesk 20 the index rose another 2%, after rising 4% on Thursday.
Shares of stock exchange operators Coinbase AND Robinhood increased by approximately 5% and 4%, respectively. Small-cap cryptocurrency trading activities benefit trading platforms. The appetite for smaller-cap, higher-risk coins increased ahead of Trump's inauguration, with Litecoin it has increased by 27% in the last two days.
The moves follow Bloomberg report late Thursday, Trump could create the cryptocurrency advisory board he has previously promised, giving the industry a voice in his administration. Bitcoin stocks are part of discussions about possible executive order that would cover several areas of crypto policy, New York Times reported the same day.
Bitcoin is trading above $100,000 ahead of Trump's inauguration
The new heightened expectations come after warnings from Wall Street this month that while a pro-crypto Congress and White House in 2025 will certainly support innovation in the industry and asset class, it could take some time for the market to feel the impact.
Crypto coins and projects other than bitcoin likely stand to gain more from clear and supportive policies and regulations, as they have been more targeted by SEC lawsuits and alleged banking discrimination under the Biden administration. Some investors, however, say bitcoin could see a skyrocketing rise if domestic stocks or reserves are built.
Bitcoin has traded closely with stocks so far this year. It has been in consolidation mode since late December, when Federal Reserve Chairman Jerome Powell sounded an inflation alarm that died down this week after two tepid December inflation reports. Over $1 billion has flowed into Bitcoin ETFs in the last two days.
Investors expect that any announcements by the new administration next week will cause the price of bitcoin to rise – potentially to a new record.
The new heightened expectations come after warnings from Wall Street this month that while a pro-crypto Congress and White House in 2025 will certainly support innovation in the industry and asset class, it could take some time for the market to feel the impact.
“The new administration and new SEC chairman open the door to new opportunities for cryptocurrency innovation” – JPMorgan analyst Kenneth Worthington said in a note this week. However, he added, “we do not view the next wave of cryptocurrency (exchange-traded product) launches as significant for the cryptocurrency ecosystem, given the much smaller market capitalization of other tokens and much less investor interest.”
Bitcoin's record high is $108,327.01 as of December 17. In 2025 it will increase by 9%.