Bitcoin’s price has rebounded to $96,000 after a week-long dip to $90,000, fueled by reports that incoming US President Donald Trump plans to implement pro-crypto policies immediately upon his January 20th inauguration.
Sources cited by the Washington Post suggest Trump will issue executive orders addressing alleged “debanking” and reversing the controversial SAB 121 policy, which restricts banks from servicing crypto firms. This move was anticipated by crypto billionaire Mike Novogratz, who identified SAB 121 as a Joe Biden-era policy likely to be repealed under a Trump administration.
According to the Washington Post, Trump’s early embrace of a crypto legislative strategy is influenced by Silicon Valley figures like Marc Andreessen, general partner at Andreessen Horowitz. This budding alliance, coupled with a favorable court ruling for Coinbase against the SEC, has injected optimism into the crypto market.
However, some skepticism remains regarding the Trump administration’s ability to enact legislation early in its term. A strong US economy also raises concerns about the Federal Reserve’s willingness to further cut interest rates, a move that typically benefits riskier assets like crypto. These factors have contributed to downward pressure on crypto prices since mid-December.
Despite these concerns, analysts remain bullish on Bitcoin. 10x Research suggests a softer-than-expected inflation reading could trigger a Bitcoin rally, prompting the Fed to reconsider its monetary policy. Arthur Azizov, CEO of crypto payment provider B2BInPay, predicts Bitcoin could reach $100,000 to $102,000 next month.
