TL;DR
- Bitcoin experiences an 11.35% increase over the week and remains close to $105,000, showing great growth potential.
- A possible executive order from Trump could prioritize cryptocurrencies, building market confidence and giving an additional boost.
- The recovery occurs in a context of rising risk assets, particularly due to encouraging inflation data in the U.S., which strengthens economic expectations.
Bitcoin seems to be regaining its upward momentum, approaching historical highs again with a notable price recovery this week. Currently, the cryptocurrency is priced at $105,014.24, with a 5.56% increase in the last 24 hours and an impressive 11.35% rise for the week. This surge puts Bitcoin on track to achieve the biggest weekly gain since the presidential election week in November. It is worth remembering that Bitcoin reached its historic high of $108,315 in December, although it experienced declines in three of the last four weeks. At this moment, the cryptocurrency continues to demonstrate its resilience and strong growth potential.
“Trump’s re-election and his more optimistic stance on cryptocurrencies seem to have already been internalized by the market, which is driving Bitcoin’s price,”
said Zaheer Ebtikar, founder of the crypto fund Split Capital. The widespread optimism from investors appears to be linked to expectations that Trump could provide a more favorable environment for cryptocurrencies.
Impact of Trump’s Policies and the Favorable Economic Environment
Bitcoin’s recovery comes in the broader context of risk assets that are seeing increases due to more moderate inflation data in the U.S. These data have revived expectations that the Federal Reserve could opt for additional interest rate cuts, giving investors more confidence. Bitcoin’s rise is in line with this phenomenon, driven by the appetite for volatile assets like cryptocurrencies.
As for Donald Trump’s policies, close sources have reported that the former president is preparing an executive order that would elevate cryptocurrencies as a priority in his political agenda. If carried out, this would allow key players in the crypto industry to have greater influence in decision-making within his administration, which could create a more crypto-friendly environment.
Meanwhile, other cryptocurrencies have also shown positive performance. XRP, linked to Ripple Labs, reached a new high of $3.40 on Thursday, driven by expectations that its dispute with the U.S. Securities and Exchange Commission could soon be resolved. However, some analysts warn that the options market is suggesting increased volatility at the end of January.
