Bitcoin Jumps 4% as Trump’s Executive Order on Crypto Policy Looms
The price of Bitcoin, the flagship cryptocurrency, has surged 4% to $104,780.10 as reports suggest that President-elect Donald Trump is considering an executive order making crypto a national priority. The broader crypto market, as measured by the CoinDesk 20 index, has also jumped 2% following a 4% increase on Thursday.
The news has boosted the shares of exchange operators Coinbase and Robinhood, which have risen 5% and 4%, respectively. Trading activity in smaller cap cryptocurrencies has also seen a surge, with litecoin surging 27% in the past two days.
According to Bloomberg, Trump could create a crypto advisory council, giving the industry a voice within his administration. A bitcoin stockpile is also part of discussions about a possible executive order that would cover several areas of crypto policy, the New York Times reported.
Investors expect any announcements from the incoming administration next week to send Bitcoin higher, potentially to a new record. The cryptocurrency has been trading closely with stocks so far this year and has been in consolidation mode since December 2024, when Federal Reserve chair Jerome Powell sounded an inflation alarm.
Bitcoin ETFs have seen more than $1 billion in inflows in the past two days, leading some investors to predict a “rocket ship” rally if a national stockpile or reserve is established. JPMorgan analyst Kenneth Worthington noted that the new administration and a new SEC chairman could open the door for new opportunities in cryptocurrency innovation, but warned that the market capitalization of other tokens is much smaller and investor interest is lower.