Bitcoin has just delivered its largest weekly surge since the November election that cemented Donald Trump’s presidency. Climbing an impressive 14% since Sunday, the OG crypto was worth $105,681 at press time, per data from CoinGecko. It gained 3.8% in a single session.
The crypto market is excited with anticipation as Trump prepares for his second inauguration, reportedly bringing pro-crypto policies into the White House.
According to Bloomberg, the administration will name crypto as a national imperative or priority. It is also slated to create a crypto advisory council to advocate for the industry’s policy priorities, said the report.
Crypto rallies ahead of Trump’s inauguration
Bitcoin isn’t alone in its rise though. XRP skyrocketed to an all-time high of $3.40 on Thursday. Traders expect Ripple’s years-long legal battle with the SEC to end soon, fueling demand.
At the same time, options markets signal a surge in volatility. The rally also coincides with a broader rebound in riskier investments, thanks to U.S. inflation data. Lower-than-expected readings for both the Producer Price Index (PPI) and Consumer Price Index (CPI) have eased fears of aggressive Federal Reserve action.
U.S. stocks are also on a tear, notching their best week since Trump’s 2016 election. The S&P 500 rose 1% Friday morning, putting it on track for a 3% weekly gain. The Nasdaq Composite isn’t far behind, with a 2.4% increase, its best performance since December.
Still, not everyone is convinced this rally will last. December’s strong jobs numbers left some market participants wary that the Fed could pause its rate-cutting cycle. Bank of America said, “We maintain our view that the Fed cutting cycle is over.”
They pointed to strong consumer spending and a resilient economy as reasons the central bank might hold steady on rates.
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Source: https://www.cryptopolitan.com/bitcoin-and-us-stocks-see-biggest-weekly-surge-since-election-week/