Bitcoin hits a 4-week high as Trump reportedly looks to order Bitcoin stock
Top line
Bitcoin led a broader rally in the cryptocurrency market on Friday, supported by encouraging economic data Reports What President-elect Donald Trump did You might To promote digital assets when he takes office next week.
Trump speaks at the Bitcoin 2024 conference in July.
Basic facts
Bitcoin rose to more than $104,000 by mid-morning, hitting its highest price since December 18.
The world’s largest crypto token has risen more than 15% from a two-month low of less than $90,000 He hits Monday.
Other major digital assets also jumped off Monday’s lows, including Ether, which is up 17% since the start of the week, XRP, which is up 38%, and Solana, which is up 28%.
The recovery is part of a broader rebound across financial markets after Wednesday Economic inflation The report reignited prospects for an interest rate cut, pushing the US S&P 500 stock index, which has risen 28% since Tuesday, toward its best week in more than two months.
Reports about what Trump might pursue shortly after his inauguration on Monday also accelerated the rally.
Trump plans to sign executive order designating cryptocurrencies as a national priority and creating a cryptocurrency advisory board, Bloomberg I mentioned On Thursday afternoon, the long-awaited national Bitcoin stock could be part of the order signed on Monday, according to the report.
New York Times too I mentioned On Thursday that Trump’s proposed Bitcoin reserve, which would allow the federal government to buy and sell Bitcoin, is under consideration for a cryptocurrency executive order he could sign, the Times shared a husband to papers Bitcoin advocacy groups explain how Trump could create such a stock.
Big number
400 billion dollars. This relates to the amount of market capitalization that the global cryptocurrency market has added since Monday, rising from $3.41 trillion to $3.81 trillion, according to Queen Gekko.
Main background
Bitcoin accounts 54% Of the cryptocurrency market, with a market capitalization of more than $2 trillion, more than Tesla. Last month, he was asked whether he would create a Bitcoin stock similar to Trump’s government’s Strategic Petroleum Reserve He said “I think so.” Trump has turned from Bitcoin bear to bull between presidential terms, with several younger figures in his orbit publicly embracing cryptocurrencies, including Vice President-elect J.D. Vance, who He owns $250,000 to $500,000 worth of Bitcoin, according to his most recent financial disclosures. Bitcoin prices soared after Trump’s victory in November, up 51% since Election Day, as cryptocurrency investors embraced the prospect of federal government support for the token and looser financial regulation.
Crucial quote
A national bitcoin reserve “must answer many non-trivial questions” before it becomes a reality, including which government entity would oversee the reserve and how it could “undermine the dollar’s strength,” Bernstein analyst Gautam Chogani wrote in a note to clients afterward. week. Chogani, who has a very bullish price target for Bitcoin, noted that it will likely take “longer than 2025 to answer these questions and actually start buying Bitcoin.”
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2025-01-17 18:27:00
