- Bitcoin rebounds above $97K as speculation grows over Trump’s potential executive order on crypto.
- Analysts point to political uncertainty, not technical factors, as the key driver of Bitcoin’s recent volatility.
Bitcoin has regained momentum, surging above $100,000 as speculation intensifies regarding Donald Trump’s potential executive order on cryptocurrency during his first day in office.
The rally follows a sharp decline below $90,000, with the asset recovering over 6% in the past 24 hours, defying earlier forecasts of a drop below $70,000.
ETHNews analysts attribute Bitcoin’s volatility not to technical market patterns but to the current political and macroeconomic climate.
Charles Wayn, co-founder of Galxe, noted that all markets remain paralyzed by a wave of macroeconomic news, including strong U.S. jobs data and shifting inflation expectations.
Trump’s Crypto Stance Sparks Market Optimism
With Trump’s second term approaching, market participants are closely watching his stance on digital assets. Reports suggest that pro-crypto policies could be enacted immediately, boosting sentiment within the sector.
“Crypto markets don’t seem to be able to make up their mind how they feel about January right now,” said Wayn
Wayn emphasized that Trump’s campaign actively supported crypto, making it likely that his administration will prioritize digital asset regulation.
Furthermore, Trump is scheduled to host a private crypto dinner ahead of his inauguration, further fueling expectations of a policy shift favoring the industry.
“However, it’s not technicals driving this current volatility – but politics. All markets are paralyzed by the flurry of macroeconomic news hitting us all at once right now, with a stronger-than-expected U.S. jobs report causing a massive nose-dive on Friday.”
Bitcoin’s Path to a New All-Time High?
Despite persistent macroeconomic challenges, Wayn predicts that Bitcoin could reach a new all-time high within the next 10 days, driven by political momentum and renewed institutional interest.
“While Trump undoubtedly has more important things to do on day one than set crypto policies, he is a showman and knows this will grab the headlines and provide a feel-good boost for nearly 53 million U.S. investors in the middle of some pretty grim macroeconomic news.”
However, he warns that investors remain highly reactive, with both positive and negative developments capable of triggering significant market swings.
For now, Bitcoin is trading at approximately $96,936, and while volatility persists, investor sentiment remains largely positive.
Wayn advises market participants to stay focused on long-term projects and fundamentals, rather than reacting impulsively to short-term price fluctuations.
