Investing.com-- Bitcoin surged past the key $100,000 threshold on Friday, driven by growing optimism surrounding the upcoming inauguration of U.S. President-elect Donald Trump next week.
Bitcoin rose 3.4% to $102,430.0 by 09:10 ET (14:10 GMT).
Bitcoin above $100k on expectations of friendlier crypto policies under Trump
In the lead-up to President-elect Donald Trump’s inauguration on January 20, Bitcoin has experienced a significant surge, recently reaching a record high of $108,244.
This upward trajectory is largely attributed to the anticipation of crypto-friendly policies under the incoming administration.
Trump is preparing to sign an executive order making cryptocurrency a national policy priority and granting industry leaders a significant role in shaping regulations, Bloomberg reported on Friday citing sources.
Notably, the order may create a national Bitcoin stockpile using the government’s $20 billion in confiscated Bitcoin holdings, the report stated.
Trump’s campaign promises, including the potential creation of a strategic reserve and the appointment of cryptocurrency advocates to key regulatory positions, have bolstered investor confidence in the digital asset.
The appointment of Paul Atkins, a known crypto advocate, as the prospective chair of the Securities and Exchange Commission (SEC) is particularly noteworthy.
Republican officials at SEC are expected to start revising the agency’s cryptocurrency policies, possibly as soon as next week when Trump assumes office, Reuters reported on Wednesday citing sources.
Bitcoin dominance to continue in 2025, JPM says
Bitcoin’s dominance in the cryptocurrency market is expected to persist through 2025, driven by its strong appeal among investors and unique position within the digital asset ecosystem, according to a report from JPMorgan analysts. The report highlights Bitcoin’s resilience and ongoing demand compared to other cryptocurrencies.
"We expect Bitcoin’s dominance over Ethereum and other alternative tokens to continue this year for several reasons," the analysts, led by Nikolaos Panigirtzoglou, said in a note.
The report identifies eight factors underpinning Bitcoin’s strength.
These include its role as a digital gold alternative attracting substantial ETF inflows, large-scale acquisitions like MicroStrategy’s ongoing $42 billion plan, and the likelihood of Bitcoin being favored for crypto reserves by governments.
Advancements in Bitcoin’s Layer 2 networks, a shift by institutions toward private blockchains, and a focus on infrastructure over token issuance in new projects also contribute. Additionally, many decentralized projects have struggled with sustaining adoption, and regulatory clarity in the U.S. may favor bitcoin over other tokens.
Crypto price today: most altcoins jump tracking Bitcoin, Litecoin surges 12%
In the broader cryptocurrency market, most altcoins jumped much more than Bitcoin, reflecting an increased risk-on sentiment.
World no.2 crypto Ether gained 2.5% to $3,406.31.
World no.3 crypto XRP retreated 1.7% to $3.254 after recent gains.
Solana climbed over 5%, and Polygon 5.4%, while Cardano advanced 2%. Among meme tokens, Dogecoin gained more than 8%.
Litecoin surged 12% after rising more than 10% a day earlier, amid growing optimism over the possible approval of an LTC-focused exchange-traded fund (ETF).
The rally comes after Canary Capital amended its S-1 registration form with the SEC on January 15. Analysts view the amendment as a significant step toward engaging with regulators.
Such filings often suggest that feedback has been received from regulators, with the updates potentially offering insights into the review process.
If approved, the proposed ETF would make Litecoin the third cryptocurrency, alongside Bitcoin and Ethereum, to secure a U.S.-approved spot ETF.
Ayushman Ojha contributed to this report.