Bitcoin Soars to $105K Amid Optimism for Trump’s Inauguration and New Crypto Policies

In a remarkable turn of events, Bitcoin (BTC) has surged to its strongest price in U.S. dollar terms for 2025, reaching an impressive $105,000 on Friday. This price hike marks a new record against the British pound, fueled by growing anticipation surrounding the upcoming inauguration of Donald Trump. As the market braces for a new era of crypto-friendly governance in the U.S., let’s delve deeper into the factors contributing to this bullish momentum and what it could mean for the future of cryptocurrency.

Bitcoin’s Recent Price Movement

Bitcoin’s recent price surge of 5.2% over the past 24 hours has not only propelled it above the $105,000 mark but also led the broader market, including the CoinDesk 20 Index, higher. Of this index, only NEAR and Litecoin (LTC) managed to keep pace with Bitcoin’s gains, while major players like Solana (SOL) and Ethereum (ETH) lagged behind with modest 3% increases. In contrast, XRP has seen a 4% decline, pulling back from its record highs following a significant rally earlier this week.

In addition to Bitcoin, crypto-related stocks have also experienced upward momentum. MicroStrategy (MSTR), the largest corporate holder of Bitcoin, saw a 7% increase, while exchange giant Coinbase (COIN) climbed by 4.5%. Among Bitcoin miners, MARA Holdings led the pack with a remarkable 13% gain.

From Downturn to Upsurge

This recent surge is a notable turnaround from earlier in the week when Bitcoin briefly plunged below the $90,000 threshold amid fears of a deeper market pullback. Since then, Bitcoin has rebounded by 17%, driven by easing investor anxiety following the U.S. CPI inflation report and growing speculation regarding Trump’s potential actions on cryptocurrency policy.

Alex Thorn, head of research at Galaxy, noted that by overcoming last week’s local high of $102,000, Bitcoin has successfully broken out of a multi-week downtrend of lower highs, setting its sights on its December record price. “Now $108,000 is the near-term target resistance,” he stated in an X post, adding, “There are plenty of reasons to be bullish.”

Strong Bitcoin ETF Inflows

Another indicator of Bitcoin’s robust health is the recent influx of funds into Bitcoin Exchange-Traded Funds (ETFs). Over the past two days, spot Bitcoin ETFs recorded a remarkable $1.381 billion in net inflows, reversing a previous streak of outflows. Ether spot ETFs also experienced significant interest, attracting $166 million—their best day in over a month.

This surge in trading volume came at a pivotal time, as traditional markets closed on Monday, marking the final trading session before Trump’s inauguration. BlackRock’s iShares Bitcoin Trust ETF (IBIT) recorded close to $1 billion in trading volume within the first hour of trading, making it the fourth-largest volume among all U.S. ETFs and surpassing Vanguard’s S&P 500 ETF (VOO) significantly.

Looking Forward: The Implications of Trump’s Inauguration

As all eyes turn towards Trump’s inauguration ceremony on Monday, cryptocurrency investors are optimistic about potential policy changes. During his campaign, Trump vowed to position the U.S. as a leader in the crypto space, including the establishment of a national stockpile of Bitcoin—an ambitious plan compared to previous regulatory crackdowns.

Reports indicate that Trump is likely to sign an executive order elevating digital assets to a “national priority” and forming an advisory council comprised of industry experts for policy recommendations. The chances of the U.S. establishing a Bitcoin reserve have surged, with Polymarket traders estimating a 38% probability that Trump will act on this initiative within his first 100 days in office.

Market Outlook: What Experts Are Saying

As the Biden presidency comes to a close, John Glover, chief investment officer at crypto lender Ledn, emphasizes the positive technical indicators for Bitcoin. Glover points out that the only significant risk for a major corrective move would be if Trump fails to follow through on his promises to loosen regulations on digital assets and initiate Bitcoin treasury holdings. Recent headlines suggest that he appears serious about prioritizing these issues within his first 100 days.

Utilizing wave theory, Glover’s analysis predicts Bitcoin could reach $128,000 in the coming months, following an interim five-wave pattern that completes its larger wave three in an upward trend. Breaking above the previous record high of $108,000 will be crucial, although the likelihood of revisiting the recent lows at $90,000 continues to diminish.

Conclusion: A New Era for Bitcoin?

As we stand on the brink of a new presidential administration, the future of Bitcoin and the broader cryptocurrency market hangs in the balance. With growing optimism surrounding Trump’s inauguration and potential policy shifts, investors are keenly watching to see how these developments will shape market dynamics. Whether you’re a seasoned investor or new to cryptocurrency, staying informed about these trends is essential for navigating the evolving landscape of digital assets.

For those interested in investing in Bitcoin, you can learn more about how to buy Bitcoin or explore various exchanges like Kraken, Binance, and eToro to find the best platform for your needs.

As the crypto landscape evolves, staying ahead of the curve will be vital for capitalizing on opportunities and understanding the risks associated with this revolutionary asset class.