The Trumps Are All-In On Crypto Projects – Will BTC Sustain Its Momentum?
Bitcoin’s recent rally past the $40,000 mark has breathed new life into the cryptocurrency market, sparking optimism that the long “crypto winter” may finally be thawing.
This resurgence is underpinned by a mix of macroeconomic, political, and regulatory shifts that could reshape the future of digital assets.
A major driver of this bullish momentum is growing anticipation of interest rate cuts by the U.S. Federal Reserve. Investors see a looser monetary environment as favorable for risk assets like Bitcoin. Meanwhile, speculation is intensifying around the potential approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). The SEC’s recent decision not to appeal a court ruling involving Grayscale Investments has only strengthened market hopes.
Institutional enthusiasm appears to be gaining steam. On October 30, Bitcoin ETFs saw a net inflow of $900 million—the second-largest single-day influx on record. Futures markets are also heating up, with open interest in Bitcoin futures climbing to $12.7 billion, signaling confidence among professional traders.
Political developments in the U.S. are adding further fuel. The prospect of a Trump-led administration appointing crypto-friendly regulators—such as Paul Atkins to lead the SEC and former CFTC Chair Chris Giancarlo as a potential “Crypto Czar”—has been well received. These appointments could usher in a more supportive regulatory landscape for crypto.
Globally, other nations are showing growing interest in Bitcoin and blockchain technology. Brazil, for instance, is weighing the creation of a Bitcoin reserve to diversify national assets. China, Hong Kong, and Morocco are also becoming more receptive to digital assets, contributing to an improving international crypto sentiment.
However, despite these tailwinds, Bitcoin has shown signs of cooling, trading at around $93,944—roughly $14,000 below its December 2021 all-time high. Some analysts believe the market is adjusting to more tempered expectations for rate cuts in 2025.
Still, with strong institutional flows, favorable political winds, and increasing global adoption, Bitcoin may well be setting the stage for a longer-term climb—even if the ride remains volatile.
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