Bitcoin joined the broader cryptocurrency rally on Friday, buoyed by reports suggesting that President-elect Donald Trump may soon issue an executive order prioritizing cryptocurrency as a national interest.
The leading digital asset climbed over 4%, trading at $104,672.37, according to Coin Metrics data. The overall crypto market also saw gains, with the CoinDesk 20 index rising another 3%, following a 4% surge on Thursday.
Crypto Industry Optimism Grows
Trading platforms like Coinbase and Robinhood benefited from the growing appetite for cryptocurrencies, with their shares advancing by more than 4% each. Smaller, high-risk coins have also seen increased interest ahead of Trump’s inauguration, with Litecoin experiencing a remarkable 30% rise over the past two days.
The optimism stems from a Bloomberg report on Thursday, which revealed Trump’s potential plans to establish a crypto advisory council, a commitment he made during his campaign. Discussions surrounding an executive order reportedly include creating a national Bitcoin reserve, as highlighted in a separate New York Times report.
Pro-Crypto Sentiment and Market Dynamics
Wall Street analysts are cautiously optimistic, noting that while a pro-crypto Congress and White House could foster innovation in the cryptocurrency industry, the market may take time to fully realize the benefits.
"Bitcoin could see a significant rally if a national reserve or stockpile is established," some investors speculate. Altcoins and other crypto projects are also poised to gain from clear and supportive regulatory frameworks, especially given their recent struggles with SEC lawsuits and alleged banking bias under the Biden administration.
Bitcoin, however, remains the focal point, with its price closely mirroring movements in the stock market. Since late December, Bitcoin has been in a consolidation phase, influenced by Federal Reserve Chair Jerome Powell’s inflation warnings. Cooling inflation reports this month have helped reignite investor confidence, with Bitcoin exchange-traded funds (ETFs) recording over $1 billion in inflows in the past two days.
Potential Impact of Trump Administration Policies
Market participants are now anticipating that the incoming administration’s announcements could propel Bitcoin to new record highs. Trump’s pro-crypto stance and a new SEC chairman are seen as opportunities for a wave of cryptocurrency innovation.
JPMorgan analyst Kenneth Worthington highlighted this potential in a recent note: “The new administration and a new SEC chairman open the door for new opportunities in cryptocurrency innovation. However, we don’t see the next wave of cryptocurrency [exchange-traded product] launches as being significant for the ecosystem, given the much smaller market capitalization of other tokens and lower investor interest.”
Bitcoin’s Performance and Future Outlook
Bitcoin’s all-time high of $108,327.01 was set on December 17, 2024. It has already gained more than 11% in 2025, with many investors speculating that a pro-crypto executive order could send the flagship cryptocurrency soaring to new records.
As the market eagerly awaits Trump’s official plans for the crypto industry, one thing is clear: the stage is set for a transformative period in the digital asset landscape, with potential ripple effects for innovation and regulation in the years to come.
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