Crypto Market Rallies Ahead of Trump Swearing-in, Treasury Nominee Hearing Eyed

The crypto market has had a bullish 24 hours, thanks to Wednesday's soft U.S. core inflation print that alleviated hawkish Fed concerns.

Crypto Market Overview (All times ET unless indicated otherwise)The crypto market had a bullish 24 hours on Wednesday, thanks to soft U.S. core inflation print that alleviated hawkish Fed concerns. However, the momentum has slowed.

With the inflation data out of the way, crypto traders are refocusing on President-elect Donald Trump's swearing-in on Jan. 20 and possible pro-crypto action on the first day. Some expect bitcoin to set new highs by then, while others are penciling in at least 10% price swings in XRP, SOL, ETH and BTC.

On Polymarket, the probability of the U.S. holding BTC as a part of a strategic reserve has increased to 50% for the first time.

Bitwise, a San Francisco-based crypto asset management company, said on X that it provided information about bitcoin ETFs to a nation-state, adding weight to the sovereign BTC adoption narrative.

Speculation is rife that SEC commissioners Hester Peirce and Mark Uyeda could rekindle crypto policy as early as next week.

That said, don't overlook the importance and market-moving ability of Treasury nominee Scott Bessent's confirmation hearing in front of the Senate Finance Committee that kicks off at 10:30 a.m. in Washington. Bessent will likely face scrutiny on various topics, including dollar policy, tariffs and fiscal sustainability.

In released remarks, Bessent said he wants the 2017 tax cuts to become permanent and ensure the dollar remains a dominant global reserve currency. He also said tariffs are a valuable negotiating tool.

According to ING, the dollar could rally if Bessent highlights the supposedly inflationary tariffs as a key tool. A renewed uptick in the currency and Treasury yields may slow BTC's gains, potentially injecting volatility in risk assets in general. Stay alert!

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