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Bitcoin hits $105K as Trump’s crypto-friendly policies spark market optimism. Explore the impact of political shifts on BTC’s future.
Bitcoin (BTC) is riding high today at $105,000, marking a new peak for 2025. This surge coincides with the buzz surrounding Donald Trump's swearing-in ceremony, which is expected to usher in a more crypto-friendly US government. In just 24 hours, Bitcoin's price jumped 5.2%, bouncing back from earlier low $90,000 levels that were hit during a widespread market sell-off.
This recent rally, which saw BTC spike 17%, was ignited by lessening worries among investors following the US CPI inflation report last Wednesday. Speculation about Trump alleviating regulations and possibly creating a Bitcoin treasury reserve has added fuel to the bullish fire as we count down to January 20. Bitcoin managed to break out of the multi-week downtrend, edging past $102,000—last week's high—with eyes now set on critical resistance levels.
Trump's anticipated crypto-friendly administration in the US opens up new avenues for the cryptocurrency market. A lax regulatory environment could enhance the capabilities of cross-border payments, utilizing Bitcoin's decentralized nature to sidestep traditional bureaucratic and geographic hurdles. The looming introduction of a US Central Bank Digital Currency (CBDC) emphasizes the government's push toward modern digital payment methods, promising a more efficient and secure way to streamline international transactions.
“Near-term target resistance is now $108,000. There are many reasons for bullishness,” stated Alex Thorn, Galaxy's research manager, on X (formerly Twitter). John Glover, Chief Investment Officer at crypto lender Ledn, echoed this, referring to Bitcoin's technical setup as “very constructive” just as Biden enters the last week of his presidency.
Glover implies the only risk of a corrective move lies in whether Trump will follow through with easing regulations or creating BTC treasury holdings. Headlines suggest he aims to make crypto a priority in his first 100 days.
Using wave theory, Glover anticipates Bitcoin could hit $128,000 in the coming months, completing a larger third wave of an uptrend. The theory states market trends transpire in five waves, three of which align with the main trend while two signify pullbacks. Surpassing the all-time high of $108,000 is pivotal for sustaining this bullish momentum. Glover noted that while BTC may revisit the $90,000 low recently, the chances are dwindling as momentum builds.
Technical formations like the ascending triangle indicate Bitcoin's upward push might persist soon. Key resistance to monitor is at $108,000, with support hovering near $90,000, both of which will shape Bitcoin's short-term direction.
Bitcoin's recent price movements highlight a strong bullish sentiment, with the cryptocurrency continually breaking new milestones and eyeing the $128,000 mark. Though the technical outlook remains positive, investors should keep an eye on potential downturns. The pivotal factors for the continuation of this rally rest on overcoming immediate resistance levels and holding above important Fib retracement zones. Being aware and flexible will be key for making the most of Bitcoin's unpredictable journey.
In short, a supportive US government could pave the way for clearer regulatory policies, spur innovation in blockchain and fintech money transfer technologies, and encourage more widespread acceptance of cryptocurrency. This would lead to more efficient and secure international transactions, enhancing the global digital currency payment system.
