The price of Bitcoin (BTC) reached an all-time high of $109,588 on Monday after a 7.1% rise in the previous week. The recent rally supports the inauguration of the next Donald Trump. US exchange-traded funds (ETFs) also supported Bitcoin’s rise, recording a net inflow of $1.86 billion in the previous week. Technical analysis indicates a continuation of the ongoing rally and a target at the $1250K mark.
Bitcoin hits all-time high of $109,588 as Trump’s inauguration approaches
Bitcoin’s price hit an all-time high of $109,588 on Monday and surpasses the market capitalization of $2.16 trillion. The recent rise in the price of Bitcoin is supported by Donald Trump’s inauguration on Monday. Moreover, President Trump’s celebratory victory speech on Sunday mentioned Bitcoin.
Trump said in his speech: “Since the election, the stock market has risen and small business optimism has risen by 41 record points to a 39-year high. Bitcoin broke one record after another.”
With Donald Trump in the Oval Office, he may adopt cryptocurrency legislation and change tax and spending policies affecting broader financial markets and risky assets such as Bitcoin. Moreover, US macroeconomic data released last week supported this recent rise in the price of Bitcoin.
Institutional demand for the bitcoin also shows signs of a comeback, Bitcoin spot ETF data recorded a total net inflow of $1.86 billion last week, nearly six times the previous week’s flow of $312.8 million. For the price of Bitcoin to continue its upward momentum, the volume of ETF flows must intensify.
Stock markets brace for Trump’s inauguration and Bitcoin rally
U.S. stock futures traded in a narrow range while the dollar weakened on Monday, as markets braced for Donald Trump’s inauguration.
By contrast, bitcoin has risen to a record high, reflecting the optimism surrounding Trump’s expected pro-cryptocurrency stance.
Cautious market optimism is tempered by the expectation of a series of executive orders and policy changes, which are expected to quickly reshape the economic landscape.
Trump is expected to execute a series of executive orders on the first day of his presidency, with measures on immigration, tariffs and energy, all part of an overall effort to quickly implement his political agenda.
While some investors expect these interventions to be beneficial to businesses, the unpredictability of Trump’s policies raises concerns. “One thing is 100% certain: Trump wants to keep US stock markets in a good mood,” Dana Maalas, a strategist at SEB, told Bloomberg.
The prospect of Trump providing additional fiscal stimulus, through higher tax cuts and tariffs, could keep the dollar strong and Treasury yields high.
Nomura Holdings, which has joined T-Rowe Price, predicts that 10-year Treasury yields could rise to 6% this year, while a smaller portion of bond traders believe the Fed’s next move on interest rates could be to increase them, contradicting most expectations of an imminent cut.
Market volatility amid anticipation
Futures on the S&P 500 and Nasdaq 100 remained relatively unchanged, with Wall Street closing for a holiday on Monday. While the dollar retreated from a 13-month high reached earlier this month, it fell for the first time in three days.
Bitcoin Record High and Trump’s ‘Very Good’ Call with Xi Bitcoin jumped as much as 5.5% after Trump and his wife Melanie unveiled their meme coins over the weekend
Bitcoin and mutual funds rise on Trump
Bitcoin’s value soared to over $105,000 on Friday, marking an important milestone in the new year. The rally, fueled by reports that President-elect Donald Trump may prioritize cryptocurrencies as a “national priority,” has reignited interest in cryptocurrency exchange-traded funds.
Cryptocurrency ETFs Rise on Political Hopes
Reports of Trump’s potential crypto-friendly policies have led to several cryptocurrency exchange-traded funds that have been recovering since Wednesday’s cooler inflation data. This recovery was followed by a sharp sell-off stemming from concerns about the Fed may delay rate cuts following a strong jobs report.
Cryptocurrency exchange-traded funds (ETFs) totaled $582 million last week, according to Coin Desk, as reported by investors.com. However, optimism surrounding Trump’s pro-crypto stance has maintained momentum. Notably, his proposed nomination of pro-crypto lawyer Paul Atkins to head the SEC could further support the sector.
Bitcoin mining company Hut8 (HUT Quick Quote HUT – Free Report) has announced plans to build a $12 billion AI data center in Louisiana, possibly in partnership with Meta Platforms (META Quick Quote META – Free Report). This collaboration could strengthen the relationship between block chain technology and artificial intelligence, leading to increased interest in cryptocurrency-related investments. Moreover, President Trump’s celebratory victory speech on Sunday mentioned Bitcoin.
Advantages and Risks of Cryptocurrency ETFs
Cryptocurrency ETFs offer high liquidity compared to some cryptocurrencies and exposure to bitcoin or other currencies without direct ownership risk. However, major currency price fluctuations and regulatory hurdles remain among the main concerns. His proposed nomination of pro-crypto lawyer Paul Atkins to head the SEC could further support the sector
