Cryptocurrencies are still on a bullish streak. He Bitcoin (BTC) continues its rise and has once again surpassed the $100,000standing above US$102,000, according to the Binance quote. In parallel, Ethereum (ETH) experiences a more moderate rally, surpassing US$$3,400.
The crypto market thus bids farewell to what was its number one public enemy: the Biden administration and welcomes Donald Trump.
Altcoins also show notable performance. Tokens such as XRP, Solana (SOL), Dogecoin (DOGE) and Cardano (ADA) register increases of more than 5%, reaching up to 8% in the last 24 hours. Particularly noteworthy are the rises in Litecoin (LTC), which exceed 10%, driven by speculation about the possible approval of spot exchange-traded funds (ETFs) for this cryptocurrency.
The main catalyst behind this renewed momentum in the crypto market has once again been Trump. According to a Bloomberg report, the president-elect plans to declare cryptocurrencies a national priority, a move he could implement shortly after taking office on January 20. Additionally, there is speculation that Trump could establish a cryptocurrency advisory council to advance political goals related to digital assets.
What the market expects
Among the most talked about proposals is the possible creation of a strategic reserve of Bitcoin, a promise highlighted during Trump’s election campaign.
According to rumors, this reserve could be formed with the $20 billion in Bitcoin confiscated by the government, which would reinforce the official position regarding cryptocurrencies and mark a milestone in US monetary policy. “If carried out, this measure could further integrate cryptocurrencies into the global economy,” says Antonio Di Giacomo, market strategist at XS.com.
However, Trump’s plans have generated criticism among some analysts, who question their viability and highlight risks such as the volatility of crypto assets, cybersecurity challenges and the possible political use of the market.
In a related area, Scott Bessent, Trump’s nominee to lead the US Treasury, expressed his rejection of the creation of a central bank digital currency (CBDC) in a Senate appearance. «I don’t think the United States needs a CBDC; “That is more typical of countries with fewer investment alternatives,” commented Bessent, who also hinted at his support for the creation of a strategic cryptocurrency reserve, suggesting a long-term approach to digital currencies.
Added to this context is the optimism generated by recent inflation data in the United States, which turned out to be more favorable than expected. The moderation in core inflation in December was the trigger for recent increases in risk assets, easing pressure on US bonds.
Although the Federal Reserve will likely keep rates unchanged this month, based on a 97.3% probability based on CME’s FedWatch tool, the market is beginning to price in a possible rate cut in May, reinforcing the appeal of cryptoassets. . “The market anticipates that interest rates will close this year around 3.93%, compared to the 4.03% expected for 2025, increasing expectations of a cut in May,” explains Kathleen Brooks, research director at XTB.
Source: Ambito
