Bitcoin rebounds above $100k after recent slump, with focus on Trump's crypto policies

From Investing.com: 2025-01-07 01:24:33

Bitcoin surged on Tuesday, surpassing $100,000 and climbing back into six-digit price territory after a recent slump, with focus now on the upcoming inauguration of President-elect Donald Trump. MicroStrategy purchased 1,070 Bitcoin, solidifying its position as the largest corporate holder of the crypto. Other cryptocurrencies also saw gains.

Traders are closely monitoring Trump’s policies towards the crypto industry, as he aims to make America the “crypto capital” of the world. Trump appointed crypto-friendly individuals to key regulatory positions, but uncertainty looms over his economic policies. The possibility of trade tariffs on major partners like China could escalate global tensions and impact economic growth.

Bitcoin is anticipated to continue rising ahead of Trump’s inauguration on January 20, but may face consolidation later in the month due to lack of clear market drivers. MicroStrategy’s additional investment in Bitcoin also contributed to positive sentiment, with the stock being viewed as a proxy for the cryptocurrency and showing strong performance compared to Bitcoin.

Altcoins followed Bitcoin’s upward trend, with Ethereum slightly dropping to $3,674.35 and Binance Coin rising 1.2%. Cardano, Solana, and Dogecoin remained stable or slightly increased, while meme token Shiba Inu saw a nearly 2% rise. The overall crypto market is optimistic about potential growth beyond Bitcoin, driven by expectations of favorable U.S. regulations.



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