Bitcoin Rebounds Above $97,000 Amid Speculation on Trump’s Crypto Policies

Bitcoin surged back above $97,000 on Tuesday, recovering from Monday’s dip below $90,000. This 6% climb over 24 hours ended the day’s trading session in Asia near $96,000, defying mid-halving cycle predictions of a potential drop below $70,000. The cryptocurrency’s resilience surprised many, with Charles Wayn, co-founder of Web3 infrastructure network Galxe, attributing the recent volatility to political factors rather than technical trends.

“Crypto markets can’t seem to decide how they feel about January,” Wayn noted. “The recent swings are driven by macroeconomic and political news, not traditional market indicators.” A stronger-than-expected U.S. jobs report triggered a market downturn last Friday, further fueling uncertainty.

Adding to the speculation, U.S. inflation data released Tuesday showed a 0.2% rise in the Producer Price Index (PPI) last month. Wayn suggested this likely signals the Federal Reserve’s intention to maintain its current interest rate stance, neither raising nor lowering rates in the short term.

Trump’s Pro-Crypto Stance Sparks Optimism

The return of Donald Trump to the presidency has added a layer of intrigue to the crypto market. Known for his pro-crypto stance during his previous campaign, Trump has reportedly planned a private crypto dinner this Friday ahead of his inauguration. Rumors are swirling about potential pro-crypto policies being enacted “on day one” of his presidency, boosting market confidence.

“Trump’s crypto-friendly policies could provide a feel-good boost for nearly 53 million U.S. investors, even amid grim macroeconomic conditions,” Wayn explained. “While crypto might not be the top priority on day one, Trump understands the headlines it will generate.”

All-Time High on the Horizon?

Wayn forecasts that Bitcoin could hit a new all-time high within the next 10 days if positive momentum continues, likely avoiding the feared drop below $70,000. Despite this optimism, he warned that the market remains highly reactive to both good and bad news.

“Investors should avoid the noise and focus on projects and communities they care about,” Wayn advised. “Day traders, however, will face heightened challenges as sentiment-driven volatility persists.”

As of this writing, Bitcoin is trading at $96,936, with the market closely monitoring both political developments and macroeconomic signals for the next move.

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