Bitcoin rallied on Friday, climbing more than 4% to $104,672.37, according to Coin Metrics, amid growing speculation that President-elect Donald Trump is preparing an executive order to prioritize cryptocurrency. The broader crypto market also gained, with the CoinDesk 20 index up 3%, building on Thursday’s 4% rise.
Shares of leading trading platforms Coinbase and Robinhood rose more than 4%, driven by increased trading activity in smaller-cap cryptocurrencies. Litecoin, for example, has surged 30% in the past two days, reflecting heightened investor appetite for riskier digital assets.
Trump’s Crypto Agenda
Reports from Bloomberg and The New York Times suggest Trump’s forthcoming executive order may include the creation of a crypto advisory council, fulfilling a previous promise to give the industry a direct voice in government. Discussions are also underway about a potential national Bitcoin reserve, a move that could further bolster the cryptocurrency’s market position.
Analysts see the move as part of a broader shift toward pro-crypto policies, with Trump’s administration poised to foster innovation and clear regulatory pathways for the industry.
Wall Street’s Reaction
Wall Street analysts have cautioned that while a pro-crypto Congress and White House could benefit the industry long-term, immediate impacts may take time to materialize. JPMorgan analyst Kenneth Worthington noted that new regulatory clarity could especially benefit smaller altcoins, which have faced regulatory challenges under the Biden administration.
Bitcoin, however, could experience a dramatic rally if a federal Bitcoin stockpile is established. Its current all-time high of $108,327.01, set on December 17, appears within reach as investor confidence builds.
Market Dynamics
Bitcoin’s price movements have closely tracked stock performance this year, with both markets responding positively to cooling inflation data in December. Bitcoin exchange-traded funds (ETFs) have seen inflows of over $1 billion in the past two days, further driving optimism.
Investors are eyeing the incoming administration’s announcements next week, which could push Bitcoin to new records. Kenneth Worthington emphasized that while the broader crypto ecosystem faces challenges, Trump’s executive order could unlock significant opportunities for innovation and growth.
