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

A New Problem Rises for America – The Debt Ceiling (Expecting #SPX and #NDX to Resume Their Decline After a Likely Short-Term Recovery)

The confrontation between the U.S. and the EU has entered a new phase. The U.S. president is taking a hardline approach toward Europe, effectively following a "tit for tat" strategy

Pati Gani 14:06 2025-03-14 UTC+2

USD/JPY: Analysis and Forecast

The Japanese yen is losing ground today. Positive news on U.S.-Canada trade negotiations and reports that Democrats have secured enough votes to prevent a U.S. government shutdown are improving global

Irina Yanina 13:33 2025-03-14 UTC+2

XAU/USD: Analysis and Forecast

Gold is consolidating after reaching a new all-time high. Concerns over U.S. President Donald Trump's aggressive trade policy and its impact on the global economy continue to drive demand

Irina Yanina 10:08 2025-03-14 UTC+2

What to Pay Attention to on March 14? A Breakdown of Fundamental Events for Beginners

There are few macroeconomic events scheduled for Friday, and none of them are significant. The UK will release reports on GDP and industrial production, but strong figures are not expected

Paolo Greco 07:05 2025-03-14 UTC+2

GBP/USD Pair Overview – March 14: The Last Day of the Week as a Mere Formality

On Thursday, the GBP/USD currency pair also began a slight downward correction. While the pound did not depreciate significantly, explaining why it rose for two weeks is difficult. Of course

Paolo Greco 02:39 2025-03-14 UTC+2

EUR/USD Pair Overview – March 14: Maybe That's Enough?

The EUR/USD currency pair finally began to decline on Thursday, but once again, this movement was not linked to macroeconomic factors or fundamental events. It wasn't even related to Donald

Paolo Greco 02:39 2025-03-14 UTC+2

EUR/USD: A Southern Impulse That Should Not Be Trusted

On Thursday, the EUR/USD pair reached a three-day low of 1.0823 but did not break into the 1.07 range, as the downward momentum gradually faded. The EUR/USD pair is currently

Irina Manzenko 23:55 2025-03-13 UTC+2

Euro Faces a Potential Coup d'Etat

The Green Party responded to Friedrich Merz's call for a coalition between the CDU and the Social Democrats, aimed at abolishing the fiscal brake, with a strong rebuttal: "We don't

Marek Petkovich 23:45 2025-03-13 UTC+2

U.S. Inflation Brings Relief to the Fed but Not to the Markets

The euro and pound showed little reaction to news that consumer prices in the U.S. grew at their slowest pace in four months in February—a welcome sign for American households

Jakub Novak 11:14 2025-03-13 UTC+2

Euro Faces Some Challenges

The European currency has encountered some difficulties in its upward movement following yesterday's speech by the European Central Bank (ECB) President. "The eurozone economy is facing exceptional shocks caused

Jakub Novak 10:39 2025-03-13 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.