Trump’s Proposed Crypto Executive Order Sparks Bitcoin Gains: Bitcoin is once again at the forefront of the crypto rally, with its price surging by over 4% on Friday, reaching $104,672.37, according to Coin Metrics. This recent gain follows a wave of positive sentiment in the crypto space, driven by reports that President-elect Donald Trump could soon issue an executive order that would prioritize cryptocurrency on a national level. The broader crypto market also saw gains, with the CoinDesk 20 index increasing by another 3%, following a similar 4% jump on Thursday.
The increased optimism has positively impacted cryptocurrency exchange operators as well, with shares of Coinbase and Robinhood rising by more than 4% each. Small-cap cryptocurrencies, which are generally seen as higher-risk assets, have also benefited from the growing appetite among investors. In particular, litecoin has experienced a 30% surge in the past two days. This growing interest in smaller coins has been fueled by the anticipation surrounding Trump’s inauguration and the potential regulatory shifts that could follow.
The surge in cryptocurrency prices follows a Bloomberg report from Thursday evening, which suggested that Trump is preparing to launch a crypto advisory council. This council, which Trump had previously promised, would give the crypto industry a direct voice within his administration. Additionally, discussions about a possible executive order could involve the creation of a national stockpile of bitcoin, with the goal of addressing several aspects of crypto policy. These developments have generated a sense of hope that a more favorable regulatory environment could soon take shape for the industry.
Bitcoin’s recent rally comes amid Wall Street’s mixed expectations about the future of the crypto market. Analysts have noted that while a pro-crypto Congress and White House in 2025 would likely be supportive of innovation in the sector, the full impact of these changes might not be immediately felt. There is growing speculation that coins and crypto projects outside of Bitcoin could benefit more from clear and supportive policies, given that they have been more frequently targeted by SEC lawsuits and banking restrictions under the current administration. However, some investors believe that if the Trump administration moves forward with creating a national bitcoin reserve, it could trigger a massive rally for the cryptocurrency.
Bitcoin’s performance in 2025 so far has been closely tied to the performance of traditional stocks, with the cryptocurrency remaining in a consolidation phase since late December. This pause in movement came after Federal Reserve Chair Jerome Powell issued inflation warnings, which were tempered by recent positive inflation reports in December. Bitcoin exchange-traded funds (ETFs) have seen significant inflows, with more than $1 billion flowing into these funds in the past two days alone.
As investors eagerly await any official announcements from the incoming administration, many are hoping that such news could propel Bitcoin to new record highs. Bitcoin’s all-time high is currently set at $108,327.01, a peak reached on December 17, 2024. Since the beginning of 2025, Bitcoin has already gained more than 11%, setting the stage for further upward momentum if positive regulatory developments continue.
The heightened expectations surrounding Bitcoin are also influenced by broader market trends. Wall Street analysts have noted that while the arrival of a pro-crypto administration could open the door for greater innovation in the cryptocurrency space, it may take some time for the market to fully absorb and react to these changes. JPMorgan analyst Kenneth Worthington, for instance, acknowledged that while the new administration and a new SEC chairman offer the potential for renewed opportunities in cryptocurrency, the market capitalization of smaller tokens and lower investor interest could limit the immediate impact of new cryptocurrency exchange-traded products.
Nonetheless, Bitcoin investors remain hopeful that the changes on the horizon could lead to a new wave of growth for the crypto sector. Whether the rumored executive order from Trump materializes or not, the market’s optimism is undeniable, and many are positioning themselves for a potentially record-breaking year ahead.
In conclusion, Bitcoin’s recent gains are a clear reflection of the growing optimism surrounding the future of the cryptocurrency industry, particularly with the potential for significant policy changes under President-elect Trump’s administration. As the market continues to evolve, the crypto space stands poised for further innovation and growth, with Bitcoin leading the charge toward new highs.
