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Bitcoin is approaching $100,000 as the largest digital currency returns to momentum with Donald Trump's US election triumph ready to be validated. On Monday, the original cryptocurrency jumped by up to 1.41% to $99,871. It had gained 5.66% in the week ending Sunday, the most since November 24.
Trump Administration's Measures
Bitcoin's outstanding run in 2024 came to an end in late December as traders moved to lock in profits. Hope that a pro-crypto White House under Trump will bring in a friendly government in the United States, which had previously sent the token to an all-time high of $108,315. Today, Congress meets to declare Donald Trump's victory in the US election.
Khushboo Khullar, partner at Lightning Ventures, said:
“The Trump administration's regulatory measures are expected to trigger a super cycle in 2025.”
The change in the market follows a net influx of $908 million by investors into a batch of US Bitcoin exchange-traded assets on Friday. This batch is classified as the group’s 5th largest inflow since its formation in January 2024. On December 19, those funds reported a new record net outflow of $680 million.
Investor’s Demand
The rise in the value of Bitcoin Coinbase premium measures the gap between the token’s price on Coinbase Global Inc. and international cryptocurrency exchange Binance Holding Ltd. Coinbase Global Inc. is a prominent US digital-assets exchange, and Binance Holding Ltd. is also encouraging for Bitcoin traders.
The premium had fallen to its lowest level since Sam Bankman-Fried's FTX collapsed in 2022 at the beginning of the year, but it has since recovered, suggesting that investor demand in the US is still stable.
Bitcoin Outlook 2025
According to Joe McCann, founder and CEO of Miami-based crypto hedge fund Asymmetric, "the ETF publishers almost all trade and maintain with Coinbase, so they try to move the excess or discount depending on desire for the ETF."
The future of Bitcoin in 2025 will depend in part on how much Trump keeps his promises about cryptocurrency, including creating a national Bitcoin reserve. Some people don't think the rally can last. When asked which 2024 investments were the most likely to lose money in 2025, 39% of the participants selected Bitcoin, giving it the majority of the vote in an MLIV Pulse survey conducted on January 6.
