empty
17.01.2025 09:20 AM
Bitcoin Kicks Off the Party

Bitcoin looks poised for a celebratory rally ahead of Donald Trump's inauguration, as the president-elect has pledged to make America the global hub for cryptocurrency. Insider reports from Bloomberg indicate that Trump intends to prioritize digital assets in U.S. policy. Initiatives may include establishing a crypto advisory board to protect the industry and creating strategic reserves in Bitcoin. Is the BTC/USD rally really surprising?

Market sentiment suggests that even a neutral stance from Trump on digital assets would be beneficial for the crypto sector. However, his shift from being a crypto skeptic to embracing digital currencies serves as a positive signal for BTC/USD bulls. With Bitcoin already having rallied by 50% since Trump's election victory, the question arises: will this turn into a "buy the rumor, sell the fact" situation?

Crypto enthusiasts argue that investors who take profits now might miss out on the larger picture. Trump is expected to enact several crypto-friendly laws that could drive BTC/USD prices even higher. Coupled with an improving risk appetite and Bitcoin's correlation with the Nasdaq 100 index reaching a two-year high, the overall outlook remains bullish.

Bitcoin and Nasdaq 100 Performance Trends

This image is no longer relevant

During his first term, Trump was particularly focused on stock market performance, seeing it as a key indicator of his presidency's success. It's unlikely that his perspective has changed. The potential for strong corporate earnings, excitement surrounding quantum computing, and the Federal Reserve's possible return to rate cuts amid slowing inflation and economic activity all support the case for stocks and riskier assets, including Bitcoin.

Recent remarks from Christopher Waller of the Fed, suggesting that monetary policy might be eased as soon as March if inflation continues to slow, have further fueled the rally in the Nasdaq 100 and BTC/USD.

Bitcoin is also benefiting from reports of pension funds in the U.S., Australia, and the U.K. entering the crypto space. With Bitcoin experiencing a 120% rally in 2024 and gaining support from the incoming U.S. president, these institutions are increasingly compelled to include digital assets in their portfolios.

This image is no longer relevant

JP Morgan estimates that specialized exchange-traded funds (ETFs) focusing on alternative tokens like Solana and XRP could attract $14 billion in investments.

On a technical level, the BTC/USD pair is forming an Expanding Wedge pattern on the daily chart. A decisive breakout above point 5, which is near the $102,800 mark, would increase the likelihood of a resumed uptrend and create a strong basis for making purchases. Conversely, if the breakout fails, it could trigger a reversal pattern, presenting selling opportunities for Bitcoin.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

April to play crucial role in Europe's gas future

Europe's gas sector is entering a critical phase, as the end of the heating season sets the stage for refilling storage facilities, which are now two-thirds empty after the winter

Miroslaw Bawulski 13:01 2025-03-31 UTC+2

WTI – West Texas Intermediate. Prices Lack Support for Growth

West Texas Intermediate (WTI) crude oil prices are attempting to attract buyers, but the market remains in a state of uncertainty. Concerns over President Trump's aggressive trade tariffs are putting

Irina Yanina 12:39 2025-03-31 UTC+2

EUR/USD. Analysis and Forecast

At the start of the new week during the Asian session, the EUR/USD pair attempted to attract buyers, but this was unsuccessful. The euro received support from easing concerns about

Irina Yanina 12:35 2025-03-31 UTC+2

US stock market runs into trouble

Rumors about mutual tariffs and another blow to consumer confidence triggered the second-worst sell-off of the S&P 500 this year. Investors are still holding piles of US stocks

Marek Petkovich 10:58 2025-03-31 UTC+2

EUR/USD. Hello, April: Eurozone Inflation Report, ISM Indices, and Nonfarm Payrolls

The first week of every month is the most informative for EUR/USD traders. The economic calendar traditionally includes a report on inflation growth in the eurozone, American ISM indices

Irina Manzenko 06:28 2025-03-31 UTC+2

GBP/USD Pair Overview – March 31: Nonfarm Payrolls, Trump, and Unemployment May Create New Problems for the Dollar

The GBP/USD currency pair continued to trade sideways near its highs on Friday. This sideways movement has persisted for several weeks, and the British pound has not managed even

Paolo Greco 06:24 2025-03-31 UTC+2

EUR/USD Pair Overview – March 31: A New Week of Trials for the Dollar

The EUR/USD currency pair rose again on Friday. As we can see, the correction against the upward trend of recent weeks ended very quickly. But that's no surprise, given that

Paolo Greco 06:24 2025-03-31 UTC+2

What to Pay Attention to on March 31? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Monday. The only somewhat interesting reports will come from Germany. Retail sales and inflation data for March will be released. However, we'd

Paolo Greco 03:21 2025-03-31 UTC+2

AUD/USD: Analysis and Forecast

The AUD/USD pair continues its sideways consolidation, remaining within a familiar range near the key psychological level of 0.6300. This movement is driven by several factors impacting global market sentiment

Irina Yanina 11:16 2025-03-28 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is consolidating near the key psychological level of 1.0800, showing no intention of retreating below 1.0780 as traders and investors await the release of the U.S

Irina Yanina 10:45 2025-03-28 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.