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Bitcoin extended its rally on Tuesday, re-entering six-digit territory after recovering from a year-end slump. The cryptocurrency gained momentum from both institutional buying and anticipation surrounding President-elect Donald Trump’s upcoming policies.
Bitcoin Performance
- Price as of 01:02 ET (06:02 GMT): $101,711.6
- Daily Increase: 2.1%, briefly surpassing $102,000 earlier in the day.
Key Market Drivers
- MicroStrategy Adds to Bitcoin Holdings
- MicroStrategy Incorporated (NASDAQ: MSTR) purchased another 1,070 Bitcoin, bolstering its position as the largest corporate Bitcoin holder.
- Analysts remain bullish on MicroStrategy’s strategy of growing Bitcoin reserves faster than share dilution, citing a promising outlook for the stock, which outpaced Bitcoin in percentage gains through 2024.
- Trump’s Pro-Crypto Policies in Focus
- President-elect Donald Trump has pledged to make America the “crypto capital” of the world.
- His nomination of Paul Atkins, a crypto-friendly lawyer, as head of the Securities and Exchange Commission (SEC) has fueled optimism about regulatory reforms.
- Uncertainty persists, however, as Trump dismissed reports suggesting softer trade tariffs. Potential trade tensions, particularly with China, could dampen risk appetite and reduce Bitcoin’s appeal.
- Market Sentiment Ahead of Trump’s Inauguration (Jan. 20)
- Traders expect Bitcoin to maintain upward momentum in the lead-up to the inauguration.
- However, consolidation may occur later in January amid a lack of fresh cues.
Broader Crypto Market Trends
- Ether (ETH): Fell slightly to $3,674.35.
- XRP: Rose 1.2%, signaling positive momentum.
- Altcoins:
- Solana, Cardano, and Polygon traded flat-to-positive.
- Dogecoin: Gained nearly 2% among meme tokens.
- Regulatory Optimism: Most altcoins posted strong gains throughout 2024, with expectations that pro-crypto U.S. regulations will spur broader market growth.
Outlook
Bitcoin’s rally reflects strong institutional interest and hopes for favorable policies under the incoming Trump administration. While short-term gains are likely, macroeconomic uncertainty, particularly around trade tensions and regulatory specifics, could test the crypto market’s resilience in the months ahead.
