18th January 2025 – (New York) Bitcoin re-entered the crypto rally on Friday, buoyed by reports that President-elect Donald Trump may soon issue an executive order prioritising cryptocurrency at a national level. The flagship cryptocurrency surged by over 4%, reaching $104,672.37, according to Coin Metrics. Meanwhile, the broader crypto market, as tracked by the CoinDesk 20 index, rose by an additional 3% following a 4% increase on Thursday.
Shares of exchange operators, including Coinbase and Robinhood, each gained more than 4%. The uptick in trading activity for smaller-cap cryptocurrencies has benefited trading platforms, with a notable appetite for higher-risk coins. Litecoin, for instance, has rocketed up by 30% over the past two days.
The momentum follows a Bloomberg report indicating that Trump might establish the crypto advisory council he previously proposed, which would grant the industry a voice within his administration. Discussions surrounding a potential executive order are said to include plans for a national bitcoin stockpile, according to the New York Times.
Investor expectations have risen in light of these developments, particularly ahead of Trump’s inauguration. Despite warnings from Wall Street that the pro-crypto environment in Congress and the White House may take time to translate into market impacts, optimism remains high. Some analysts suggest that cryptocurrencies outside of Bitcoin might benefit most from clear and supportive regulations, having faced significant scrutiny under the previous administration.
Bitcoin has been trading closely with the stock market this year, entering a consolidation phase since late December when Federal Reserve Chair Jerome Powell raised inflation concerns. However, this week’s two cooler inflation reports have alleviated some of those worries. Notably, Bitcoin exchange-traded funds (ETFs) have seen over $1 billion in inflows in the past two days.
Investors are anticipating that any announcements from the incoming administration next week could propel Bitcoin to new heights, potentially breaking its previous record of $108,327.01 set on 17th December.
JPMorgan analyst Kenneth Worthington commented, “The new administration and a new SEC chairman open the door for new opportunities in cryptocurrency innovation.” However, he cautioned that he does not foresee a significant wave of cryptocurrency exchange-traded product launches impacting the broader crypto ecosystem, given the smaller market capitalisation of other tokens and lower investor interest.
Thus far in 2025, Bitcoin has risen over 11%, reflecting a growing confidence in the market as it awaits further developments.
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