Bitcoin Hits $105K as Trump’s Crypto Plans Spark Market Frenzy!

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What to know:

  • Bitcoin (BTC) hit a 2025 high above $105,000 on Friday, driven by excitement for pro-crypto policies under incoming U.S. President Donald Trump.
  • Spot bitcoin ETFs saw $1.3 billion in inflows in the past two days, while crypto stocks like MicroStrategy and Coinbase surged amid a broad market rally.
  • Traders are targeting bitcoin’s all-time high at $108,000 as the next resistance, with Ledn CIO John Glover suggesting BTC could reach $128,000 in the coming months.

In U.S. dollars, Bitcoin (BTC) reached its peak price on Friday, marking a new high, while also setting a fresh record against the British pound. This surge in value comes as anticipation builds for a more crypto-friendly U.S. administration under President-elect Donald Trump, who takes office next week.

During the U.S. trading session, Bitcoin reached a new high of $105,000 and climbed by 5.2% over the previous day, propelling the broader crypto index, CoinDesk 20 Index, upwards as well. Interestingly, only Near (NEAR) and Litecoin’s LTC matched bitcoin’s growth rate, while Solana (SOL) and Ethereum’s ether (ETH) trailed with a 3% increase each. On the other hand, XRP experienced a slight setback, dropping by 4%, pulling back from its recent highs after an impressive surge earlier in the week.

Stocks linked to cryptocurrencies are experiencing an upward trend as well. The biggest corporate Bitcoin holder, MicroStrategy (MSTR), saw a 7% increase in value throughout the day. Meanwhile, the crypto exchange titan, Coinbase (COIN), climbed by 4.5%. Notably, MARA Holdings posted the largest gains among significant Bitcoin mining companies, with a surge of 13%.

After a steep drop in bitcoin’s price earlier this week, causing concerns of a further decline below $90,000 due to a broad-market sell-off, the situation has significantly improved since then. Bitcoin has surged by 17% as investor worry over the U.S. CPI inflation report on Wednesday subsided and attention shifted towards speculation about potential crypto actions from Donald Trump following his inauguration on January 20th.

Last week’s peak of $102,000 in our local market was surpassed by BTC, and it also managed to move beyond its several weeks-long trend of lower peaks as part of an attempt to reach its previous record price from December, according to Alex Thorn, the head of research at Galaxy.

He stated in a recent post that the short-term goal for price increase is approximately $108,000. There are numerous factors indicating a positive outlook.

Strong bitcoin ETF flows

In the last two days, bitcoin ETFs collectively witnessed a net inflow of approximately $1.381 billion, marking a reversal from four consecutive days of outflows, according to data from Farside Investors. Moreover, ether spot ETFs experienced an inflow of $166 million, which is their strongest daily influx in over a month.

Today marks the final day for conventional market trading prior to the upcoming inauguration of President Trump, as markets remain closed on Mondays.

As an analyst, I observed a significant trading activity with the BlackRock’s iShares Bitcoin Trust ETF (IBIT). In just over an hour during the session, it recorded approximately $1 billion in trading volume. This impressive figure places it among the top four U.S. ETFs in terms of daily volume. Remarkably, it outpaced Vanguard’s S&P 500 ETF (VOO) by nearly ten times in assets under management, according to Barchart data.

All eyes on Trump

The key event that many crypto investors are eagerly anticipating is Trump’s inauguration ceremony on Monday, as they hope for significant shifts in the cryptocurrency landscape under the new presidency. During his campaign, Trump expressed plans to make the U.S. a leading force in the crypto industry by amassing a national reserve of Bitcoin, marking a stark departure from previous years’ strict regulations and enforcement actions.

According to Bloomberg’s report on Thursday, Trump is planning to issue an executive order that designates digital assets as a top national concern and establishes a consultative body comprising representatives from the industry to offer policy suggestions.

Over the last few days, there has been an increase in the likelihood that the United States may create a Bitcoin reserve. According to trades made on Polymarket, there is now a 38% chance that President Trump could establish this during his first 100 days in office.

In the penultimate week of President Biden’s term, the overall chart pattern for Bitcoin continues to look quite optimistic, according to John Glover, the top investment strategist at digital currency lender Ledn, as he shared in a written message.

If Donald Trump doesn’t follow through with his plans to relax regulations on digital currencies and accumulate Bitcoin for the U.S. treasury, there might be a significant drop,” he noted further. “News reports suggest that he intends to make this a key focus within his first 100 days in office.

Glover’s prediction based on wave theory indicates that Bitcoin could reach approximately $128,000 in the upcoming months as it completes its third major upward movement, or wave 3, within its overall uptrend. This wave theory suggests that market trends typically consist of five waves, with three being part of the primary trend and the remaining two serving as temporary corrections.

According to Glover, surpassing the previous peak of $108,000 is crucial, but it’s still somewhat possible that we might return to the relatively recent lows of $90,000. However, this situation is becoming less and less likely as time goes on.

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2025-01-17 21:42