Rebounds to $102,000 after New Year’s defeat; Trump in Focus by Investing.com

Investing.com — Bitcoin rose on Tuesday, extending recent gains and re-entering six-figure price territory after a New Year’s rout, as markets now look ahead to the inauguration of President-elect Donald Trump.

Sentiment was also supported by MicroStrategy Incorporated (NASDAQ:) purchasing another 1,070 BTC, cementing its position as the world’s largest cryptocurrency holder.

It rose 2.1% to $101,711.6 by 01:02 ET (06:02 GMT), after briefly rising above $102,000 earlier in the day.

The broader cryptocurrency markets also advanced alongside Bitcoin.

Trump’s policies in focus as inauguration approaches

Cryptocurrency traders were directly focused on what Trump’s policies would entail for the cryptocurrency industry, given that he pledged to make America the “cryptocurrency capital” of the world.

Trump has nominated several crypto-minded candidates to key Cabinet and regulatory positions, most notably respected attorney Paul Atkins to lead the Securities and Exchange Commission.

But uncertainty about Trump’s broader economic policies increased this week after the president-elect denied a Washington Post report that his administration would impose trade tariffs that were less stringent than he had previously indicated.

Trump has pledged to impose heavy tariffs on several major trading partners, especially China. Such a scenario would likely exacerbate global trade tensions and put pressure on economic growth.

Trade war fears are also expected to dampen risk appetite, which could reduce the appeal of cryptocurrencies.

Bitcoin is expected to rise in the run-up to Trump’s inauguration on January 20, but may face consolidation amid a dearth of signals later in the month.

MicroStrategy Buys More Bitcoin

Sentiment towards Bitcoin was also boosted by MicroStrategy adding over 1,000 tokens to its Bitcoin inventory.

The stock is largely seen as a proxy for Bitcoin, and is on an excellent bull run through 2024, even outperforming Bitcoin in percentage terms.

Benchmark analysts said the outlook for the stock remains optimistic, praising its strategy of growing its bitcoin holdings faster than diluting its shares.

Crypto Price Today: Altcoins Track Bitcoin Rebound

Broader cryptocurrency prices have risen alongside Bitcoin. The global No. 2 cryptocurrency lagged, falling slightly to $3,674.35, while the global No. 3 cryptocurrency rose 1.2%.

and moved in a flat to positive range, while among tokens it rose by approximately 2%.

Most altcoins have also been posting stellar gains through 2024, with markets betting that friendlier US regulations will help spur more value in cryptocurrencies outside of Bitcoin.