Zinger Key Points
- Analysts note that the Bitcoin community are encouraged by Trump's pro-crypto stance and support of Bitcoin.
- They stress the importance of the next 100 days for the US, stating the need for clear regulatory guidelines and a strategic view of Bitcoin
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Bitcoin BTC/USD has surged past the $104,000 mark, propelled by a mix of renewed optimism surrounding the incoming US administration and strong market sentiment, according to experts.
What Happened: According to Coingecko data, the cryptocurrency briefly hit $104,279 and is trading at $103,791 at the time of writing, up 5.6% on the day.
Market analysts point to the incoming Donald Trump administration's potential embrace of crypto, as well as high levels of buyer interest to explain the latest jump.
The wider crypto market is also experiencing considerable gains, with Ethereum ETH/USD trading at $3,418, after earlier reaching $3,431.
Numerous altcoins are showing substantial growth with Solana SOL/USD, Dogecoin DOGE/USD, Shiba Inu SHIB/USD and Litecoin LTC/USD rising by 5%, 7%, 8%, and 12% respectively.
Also Read: Bitcoin Miners Consolidate Power: 12 Firms Now Control 30% Of Network Hash Rate
Why It Matters: The surge is attributed to several contributing factors, primarily driven by expectations concerning the new US administration’s stance on cryptocurrencies.
In a note to Benzinga, Seamus Rocca, Chief Executive Officer at Xapo Bank, said, “As we approach President-elect Donald Trump's inauguration, the Bitcoin community is eager to see how he delivers on his bold message from Bitcoin Nashville—that the United States should be embracing this transformative industry."
Rocca also noted that Trump's acknowledgement of Bitcoin's potential and his calls for American leadership in the space have sparked renewed optimism across the market.
Rocca emphasized the need for regulatory action in the US stating that 2025 is shaping up to be an exciting year for crypto.
He sees the U.S, facing a pivotal moment as the market watches for progress not just on regulatory clarity but also on how the administration might view Bitcoin as a strategic reserve asset.
He further added that Europe is currently leading the charge in the space and that the US has much catching up to do, "The first 100 days of this administration will be critical in laying the groundwork for common-sense regulation that supports innovation and strengthens Bitcoin's role in the financial ecosystem."
In addition to external factors, market sentiment also plays a vital role in the current price movements.
Alex Kuptsikevich, chief market analyst at FxPro said, "Crypto market sentiment remains in the ‘Greed' territory, with values recording 75 for the second consecutive day.
These figures indicate significant buyer interest but are not yet indicative of an overbought market."
Kuptsikevich further explained that, "Bitcoin's price has exceeded $102,000, entering the range it occupied ten days ago. Similar to the broader market, BTC is on the brink of reaching the December highs."
He also highlighted that there is a potential for future growth to the $108,000 to $110,000 range.
"If risk appetite in equities persists, an advance into the 108K−110K range could materialize within a few days.
Continued upward movement might trigger FOMO, potentially driving the price to $130,000 by the end of January,” he said.
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