Bitcoin rose above $104,900 as this year's rally benefited from several tailwinds, including President-elect Donald Trump's impact on markets.
The property is up 3.5% on the day after a new asking price of $105,004. It is now up more than 140% year-to-date and 15% over a 30-day period, according to CoinGecko data.
Following Trump's presidential victory in early November, Bitcoin and the broader crypto market made a big move. While questions remain as to whether proposed new policies for digital assets will materialize, others are confident that recent developments are creating momentum.
“A campaign promise to make America the ‘capital of the planet' could be seen as political posturing,” said Lucas Schweiger, digital asset research manager at banking group Signum. Decrypt.
But the proposal of the Crypto Advisory Council, Trump meeting several heavyweights of the crypto industry, such as Coinbase CEO Brian Armstrong, sends a signal that the new administration is paying more attention to the crypto market and wants to understand its potential. Opportunities for the American economy,” he added.
Certain proposals, including changes to tax policy for Bitcoin miners and profits from certain tokens, must be approved by both Congress and the Senate, both of which are currently controlled by Republican majorities.
Former PayPal COO appointment David Sachs It all points to an “acceleration of convergence,” Schweiger added, with the likes of Trump's “White House AI and crypto czar” as well as several major companies jockeying for advisory council seats earlier this month.
This week, members of the Federal Reserve meet for the last Federal Open Market Committee meeting of the year, which is expected to cut another 25 basis points to between 425 and 450, according to CME's FedWatch Tool.
Lower interest rates continue to be a boon for risk assets, including crypto, this year as credit becomes cheaper and spurs investment.
Sentiment for continued higher prices next year will also benefit other altcoins and meme coins, boosted by Trump's victory on November 5.
SUI and Polkadot (DOT) are today's top performers of the top 20 cryptos with gains of 7% and 5.8% by market capitalization.
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