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

USD/CAD. Analysis and Forecast

The USD/CAD pair is showing signs of recovery for the second consecutive day after a recent decline, rebounding from a two-week low around 1.4260. Spot prices have climbed above

Irina Yanina 10:16 2025-03-19 UTC+2

XAU/USD. Analysis and Forecast

Gold has halted its upward movement as it attempts to consolidate at new all-time highs around $3,045, with bulls taking a pause ahead of the FOMC meeting results. The Federal

Irina Yanina 09:41 2025-03-19 UTC+2

How Might Markets React After the Fed Meeting? (Expecting a Sharp Decline in GBP/USD and a Drop in #SPX)

Today, the market will focus on the Federal Reserve's final decision on monetary policy. It is expected to bring nothing new, so the main topic will remain the same

Pati Gani 08:27 2025-03-19 UTC+2

What to Pay Attention to on March 19? A Breakdown of Fundamental Events for Beginners

There are few macroeconomic events scheduled for Wednesday, which suggests that volatility for both currency pairs may remain low until the evening. The dollar continues to show signs of weakness

Paolo Greco 06:44 2025-03-19 UTC+2

GBP/USD Pair Overview – March 19: The Inertial Growth Continues

On Tuesday, the GBP/USD currency pair did not attempt to correct once again. There was no macroeconomic background that day, but it is difficult to determine what is currently better

Paolo Greco 02:34 2025-03-19 UTC+2

EUR/USD Pair Overview – March 19: What Will the Fed Meeting Change?

The EUR/USD currency pair continued to trade upward on Tuesday. Although the upward movement is weakening, the euro remains strong while the US dollar keeps falling. This is happening despite

Paolo Greco 02:34 2025-03-19 UTC+2

The Euro Fires a Bazooka

The last time Germany armed itself was in the 1930s, it led to World War II. Today, German militarization is welcomed. According to Bloomberg estimates, fiscal stimulus packages worth around

Marek Petkovich 23:46 2025-03-18 UTC+2

WTI Gains Support from Rising Geopolitical Tensions in the Middle East

For the third consecutive day, West Texas Intermediate (WTI) crude oil is attracting buyers. Currently, the commodity is trading slightly above the key psychological level of $68.00, having gained over

Irina Yanina 18:24 2025-03-18 UTC+2

USD/JPY. Analysis and Forecast

Today, the Japanese yen continues to decline intraday, pushing USD/JPY close to the key psychological level of 150.00, with the pair setting a new two-day high around 149.87. Global market

Irina Yanina 18:21 2025-03-18 UTC+2

Market catches fish in muddy water

Chaos in the White House's economic policy has pushed the S&P 500 to the brink. The broad stock index briefly entered correction territory before rebounding with two consecutive days

Marek Petkovich 11:18 2025-03-18 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.