The market's leading cryptocurrency, Bitcoin (BTC), has joined the crypto rally, gaining momentum on Friday amid reports that President-elect Donald Trump may issue an executive order priority for him. cryptocurrencies as soon as he takes office.
As latest data from CoinGecko, Bitcoin rose nearly 5% in the 24-hour time frame, reaching $104,000. The broader cryptocurrency market, represented by the CoinDesk 20 index, also saw a rise, rising 1% after Thursday's 4% increase.
Excitement builds ahead of Trump's executive orders
This new interest in Bitcoin has had a positive effect on exchange operators, with shares of platforms such as Coinbase and Robinhood climbing around 5% and 3%, respectively.
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according to to CNBC, the excitement follows a Bloomberg report indicating that Trump could establish the crypto advisory council he had previously promised, which could give the industry a big voice in his administration.
Discussions on a national Bitcoin stockpile are also part of the expected executive order, which is expected to address various aspects of cryptocurrency policy, according to report by the New York Times.
While the prospect of a pro-crypto administration and Congress in 2025 is encouraging for the industry, some Wall Street analysts warn that the full impact may not be felt immediately.
Coins and crypto projects outside of Bitcoin could reportedly benefit from transparency and support rulesespecially since they have been more vulnerable to Securities and Exchange Commission (SEC) lawsuits and perceived banking discrimination under the previous administration.
Analysts Eye Record-Breaking Bitcoin Prices
Bitcoin's performance has been closely linked to the stock market this year, following a period of consolidation that began at the end of December.
This came after Federal Reserve Chairman Jerome Powell raised concerns about inflation, a sentiment that has since eased with two favorable January inflation statements.
Expectations are high that any announcement from the administration coming in next week could move the price of Bitcoin even higher, possibly setting new records.
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Analysts believe that the new administration, along with the new SEC chairman, could bring opportunities for innovation within the cryptocurrency space.
JPMorgan analyst Kenneth Worthington noted that although the environment is promising, the market capitalization of other tokens and lower investor interest may limit the impact of new digital currency products.
In a favorable technical development, the crypto analyst Ali Martinez recently did pointed out that Bitcoin has broken out of a cup-and-deal pattern, a bullish signal in technical analysis.
This pattern looks like a “cup” followed by a downtrend, or “handle,” which usually indicates opportunity to buy. According to Martinez, this suggests an upside target of $276,400 for Bitcoin – more than doubling the $108,000 peak reached at the end of last year.
Featured image from DALL-E, chart from TradingView.com
