Bitcoin has broken to fresh highs above $104,900 as this year’s rally continues to benefit from several tailwinds, including President-elect Donald Trump’s impact on markets.
The asset is up 3.5% on the day following a new record price of $105,004. It’s now up more than 140% in a year and 15% higher over a 30-day period, according to CoinGecko data.
Bitcoin and the broader crypto market saw a significant uplift following Trump’s presidential victory in early November. While questions remain about whether a slew of new proposed policies slated for digital assets will become a reality, others are confident recent developments are fomenting momentum.
“Campaign promises to make the US ‘the crypto capital of the planet’ might be viewed as political posturing,” Lucas Schweiger, Digital Asset Research Manager at banking group Sygnum, told Decrypt.
“But the Crypto Advisory Council proposal, along with rumors of Trump meeting several heavyweights of the crypto industry, such as Coinbase CEO Brian Armstrong, sends a signal that the new administration will pay more serious attention to the crypto market and look to understand its potential opportunities for the US economy,” he added.
Specific proposals, including changes to tax policy for Bitcoin miners and profits on certain tokens, must gain approval from both Congress and the Senate, both currently controlled by Republican majorities.
The appointment of former PayPal COO David Sacks as Trump’s “White House AI & Crypto Czar” earlier this month, as well as several major firms jockeying for advisory council seats, all point towards “gathering momentum,” Schweiger added.
This week, members of the Federal Reserve will gather for this year’s last Federal Open Market Committee, where it is expected to slash rates by a further 25 basis points to between 425 and 450, according to the CME’s FedWatch Tool.
Interest rate cuts have continued to prove to be a boon for risk assets, including crypto, this year as borrowing becomes cheaper and encourages investment.
Sentiment for next year’s continuation in higher prices also benefits other altcoins and meme coins, which have surged in the wake of Trump’s victory on November 5.
SUI and Polkadot (DOT) are today’s highest performers in the top 20 cryptos by market capitalization, up 7% and 5.8%, respectively.
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