Bitcoin (BTC) Price Rallies as Incoming US President Donald Trump Will Enact Favorable Crypto Policies

Bitcoin and cryptocurrency prices responded positively to the news of the budding alliance.

Bitcoin price rallied on Monday, trading at $96,000 after a week-long decline that saw the asset briefly slump to $90,000 on Monday.

Fresh gains follow reports that US President Donald Trump will enact favourable crypto policies upon his inauguration on January 20.

Sources close to the Trump administration told the Washington Post that the president-elect will issue crypto-related executive orders.

These orders are expected to address ‘debanking’ and reversing policy SAB 121, which restricts banks from servicing crypto firms.

Crypto billionaire and Galaxy Digital founder Mike Novogratz last year highlighted SAB 121 as a policy that would be quickly repealed under Trump.

The report adds that Trump’s early crypto legislative strategy was pushed by Silicon Valley moguls, including Marc Andreessen.

Bitcoin and cryptocurrency prices reacted positively to the news of the budding alliance.

Coinbase

The bullish narrative was furthered by a favourable court ruling for Coinbase against the Securities and Exchange Commission on the same day.

However, sceptics remain unconvinced of the Trump administration’s ability to pass legislation early in his term, which has seen the price rally stall.

Weighing on crypto prices: signs of a strong US economy, which have tempered hopes that the Federal Reserve will cut interest rates further.

Lower interest rates have spurred investment in riskier assets like crypto, and these fears have pulled Bitcoin and cryptocurrency prices down since mid-December.

Price outlook

Despite this, analysts say Bitcoin is still primed for gains.

“A softer-than-expected inflation reading could trigger a Bitcoin rally” as the Fed considers the impact on inflation, crypto research firm 10x Research said.

Arthur Azizov, CEO of crypto payment provider B2BInPay, has a more bullish outlook.

“Bitcoin could reach $100,000 to $102,000 next month,” Azizov told DL News.

Crypto market movers

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