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

US-EU Negotiations on the Verge of Collapse

As anticipated, this phrase can describe nearly every action taken by Donald Trump. I have consistently argued that the core of any negotiations involving Trump comes down to this

Chin Zhao 00:13 2025-06-23 UTC+2

Iran Preparing a "Long-Term Response" to the US

Only a few hours have passed since the overnight airstrike by American bombers on Iranian nuclear facilities—and already, missiles are flying in the opposite direction. However, they are not targeting

Chin Zhao 00:13 2025-06-23 UTC+2

EUR/USD: Prepare for Price Turbulence

The economic calendar for the upcoming week is packed with important releases and events. However, all of them will be overshadowed by geopolitical developments—or rather, one specific event that took

Irina Manzenko 00:13 2025-06-23 UTC+2

U.S. Dollar: Weekly Preview

The United States brings many important economic events. Additionally, as I have mentioned several times, the ongoing war in the Middle East could greatly influence market sentiment. As a result

Chin Zhao 00:12 2025-06-23 UTC+2

British Pound: Weekly Preview

The dynamics of the British pound will also not be driven by the pound itself or domestic UK news. The reasons are the same: the U.S. involvement in the Middle

Chin Zhao 00:12 2025-06-23 UTC+2

Euro: Preview of the Week

Few genuinely believe that economic news will overshadow other developments in the coming week. These "other developments" are of global significance. Over the weekend, the United States launched a strike

Chin Zhao 00:12 2025-06-23 UTC+2

AUD/JPY. Analysis and Forecast

The AUD/JPY pair is regaining positive momentum after a modest pullback the previous day. However, spot prices remain confined within a multi-day range due to mixed fundamental signals, trading near

Irina Yanina 14:39 2025-06-20 UTC+2

USD/CHF: The Pair Struggles to Gain Momentum Amid Conflicting Forces

At present, USD/CHF shows no clear intraday direction and fluctuates within a narrow range just above the 0.8155 level, reflecting market uncertainty during the European session. The Swiss franc

Irina Yanina 14:36 2025-06-20 UTC+2

The Euro Will Retain Its Strength and Investor Interest

During her speech, IMF Managing Director Kristalina Georgieva stated that she sees the potential for the euro to play a broader role globally.Her remarks came amid growing geopolitical instability

Jakub Novak 11:25 2025-06-20 UTC+2

Euro Slightly Rises After Lagarde's Speech

The euro saw a modest recovery after European Central Bank President Christine Lagarde stated that expanding trade within the region could help offset losses resulting from global fragmentation. Her optimistic

Jakub Novak 11:10 2025-06-20 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.