Bitcoin continues its upward trajectory, notching fresh highs over $104,900. The cryptocurrency’s rally is benefiting from several tailwinds, including the market impact anticipated from President-elect Donald Trump’s administration. Recording a new record price of $105,004, Bitcoin is up 3.5% on the day, and has seen an impressive rise of over 140% in a year, and 15% higher over the last 30 days, according to data from CoinGecko.
The broader crypto market also experienced a significant uplift in the aftermath of Trump’s presidential victory in early November. While there are lingering questions about whether new proposed policies tailored for digital assets will materialize, others are optimistic that recent developments could stimulate momentum.
“Campaign promises to make the US ‘the crypto capital of the planet’ might be perceived as political posturing,” said Lucas Schweiger, Digital Asset Research Manager at banking group Sygnum. “However, the proposal for a Crypto Advisory Council, along with rumors of Trump meeting with several crypto industry heavyweights, such as Coinbase CEO Brian Armstrong, sends a signal that the new administration will pay more serious attention to the crypto market and its potential opportunities for the US economy.”
It should be noted that specific proposals, including tax policy changes for Bitcoin miners and profits on certain tokens, will require approval from both Congress and the Senate, both of which are currently controlled by Republican majorities.
Another sign of the administration’s commitment to understanding and leveraging the crypto market is the appointment of former PayPal COO David Sacks as Trump’s “White House AI & Crypto Czar” earlier this month. The fact that several major firms are jostling for advisory council seats is also seen as indicative of the “gathering momentum,” added Schweiger.
This week, members of the Federal Reserve will assemble for this year’s last Federal Open Market Committee, where it is anticipated to cut rates by a further 25 basis points to between 425 and 450, according to the CME’s FedWatch Tool. Such interest rate cuts have been a boon for risk assets, including crypto, this year as cheaper borrowing encourages investment.
The euphoria is also spilling over into other altcoins and meme coins, which have seen a surge in the wake of Trump’s victory on November 5. Today’s top performers in the top 20 cryptos by market capitalization are SUI and Polkadot (DOT), which are up 7% and 5.8%, respectively. As the year comes to a close, the crypto market appears to be gearing up for a potentially more robust 2023 under the new administration.
