Why is the price of Bitcoin rising today?
After breaching the $80,000 barrier on Monday, Bitcoin rose to $90,000 by Tuesday, a historic achievement. In fact, Bitcoin's market capitalization has surpassed that of above-ground silver. If Bitcoin can push higher, the next target zone is between $92,000 and $95,000.
The exact target depends on how the price will look in the coming days. Institutional interest in Bitcoin is also increasing. This increasing interest from institutional investors is expected to further support the price of Bitcoin in the coming months
Analyst Rect Capital pointed to Bitcoin's initial decline around $90,000. It seems that there are still some traders who believe that selling Bitcoin at this price is a smart move. However, Rect Capital suggests that these sellers may soon reconsider their positions, indicating that the current dip may be temporary and Bitcoin's broader bullish trend may continue.
But why is Bitcoin growing?
The recent rise in bitcoin prices is tied to market expectations surrounding the Trump administration's potential pro-crypto stance. Many key members of Trump's team have openly supported cryptocurrency, and this support could lead to clearer regulations and more favorable policies for the industry.
The market is hopeful that Trump's policies will strengthen the overall economy through tax cuts, health care spending and labor markets. The overall optimism of the administration's economic outlook is driving positive market sentiment.
Another reason is the growing belief that the Trump administration will implement more transparent and favorable regulations for the cryptocurrency industry. Currently, the US crypto landscape is fragmented, with different states having their own laws.
Investors are hoping for clarity at the federal level on whether agencies like the SEC or CFTC will take the lead in regulating the industry. Clearer regulations could lead to the acceptance of crypto by big banks, which in turn, would increase the value of Bitcoin.
