- Bitcoin reached an all-time high of $109,000 today.
- Experts see liquidity waves driving Bitcoin toward $200,000 this year.
- Donald Trump will be inaugurated with plans for pro-crypto executive orders.
Bitcoin ripped to a new all-time high of over $109,200 today.
The rebound from a slump earlier over the past 24 hours was driven by anticipation surrounding the inauguration of US President-elect Donald Trump later today.
Optimism is mounting about pro-crypto executive orders as he enters the White House.
Improved trade relations between the US and China and continued easing measures are also helping create a favourable environment for risk assets like Bitcoin.
“Bitcoin’s supply dynamics and institutional demand point to a wild year ahead,” wrote David Brickell, head of international distribution at FRNT Financial, and former currency trader Chris Mills.
Experts predict that a fresh deluge of liquidity could push Bitcoin to $200,000 and beyond this year.
Trump’s crypto playbook
Trump’s pro-crypto stance and anticipated executive orders that could declare digital assets a national priority are energising crypto sentiment.
Bernstein analysts highlighted the significance of Trump’s policies and promises, as being the “strongest market signal for crypto holders.”
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There is even speculation that the US Treasury may establish Bitcoin as a strategic reserve asset.
On his Truth Social platform, Trump recently hinted at improving relations with China, calling a recent call with President Xi Jinping “very good for both China and the USA.”
While Trump’s first term saw protectionist policies like tariffs on Chinese goods, Brickell and Mills argue that fears of aggressive trade moves this time are “overblown.”
The China factor
China’s economic struggles are also playing a hand in Bitcoin’s rally.
The world’s largest exporter is grappling with a deflationary spiral, prompting its central bank to inject liquidity into the market to stabilise growth.
This capital is in turn flowing into global markets.
Analysts believe China’s easing policies will continue to drive demand for alternative assets as investors seek higher returns amid weakening traditional markets.
“China’s actions are exporting liquidity globally, setting the stage for Bitcoin’s ascent,” Brickell and Mills wrote.
Crypto market movers
- Bitcoin has gained 2.8% in the last 24 hours and is trading at $108,100.
- Ethereum is up 4.5% over the same period to $3,360.
What we’re reading
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
