Record-breaking Bitcoin surge past $100K: Trump's endorsement, Federal Reserve's stance, and state adoptions fueling a fresh rally
In a groundbreaking move, Arizona has become a pioneer in integrating cryptocurrencies into public finances, making it a national leader in this innovative field [1]. This legislation, signed by Governor Katie Hobbs, marks a significant step towards the adoption of Bitcoin by U.S. states. New Hampshire, Oregon, and Arizona are among the states that have officially adopted Bitcoin into their state reserves [6].
The surge in Bitcoin's price above $100,000 is primarily driven by increased institutional adoption, expectations of US interest rate cuts, and regulatory clarity under President Trump’s pro-crypto policies [7]. Analysts attribute this to the Federal Reserve’s monetary policy, which has shown signs of moderating inflation and strong expectations of an impending US interest rate cut [1]. This macroeconomic environment supports higher Bitcoin demand as a hedge against inflation and economic uncertainty [5].
Trump's administration has been promoting a more open and favourable regulatory framework for financial innovation, with the vision of positioning the United States as a global hub for the development and innovation of the crypto industry [8]. The resignation of SEC Chair Gary Gensler, who had a tough stance on crypto, further boosted investor sentiment [2][3]. This has attracted institutional "whales" and corporate buyers, fueling demand and price rises.
Large companies like Tesla and Trump’s media group have purchased significant Bitcoin amounts, and Bitcoin ETFs were officially launched in 2024, drawing institutional capital into the market [1][3][5]. This structural buying from institutional investors marks a shift from prior retail-driven rallies.
Other supportive factors include anticipation of future Bitcoin halving events (which reduce new supply), ongoing technological improvements in Bitcoin’s infrastructure, and its emerging role as a “digital gold” safe-haven amid global economic uncertainty [5].
However, it's essential to note that trade agreements between the US and UK under Trump have not been specifically cited by sources as part of the price surge drivers [1][2][3]. Similarly, official adoption of Bitcoin by several US states is not mentioned in the sources as a principal factor affecting the price [1][2].
The Federal Reserve's President, Jerome Powell, has signaled that although inflation shows signs of slowing down, economic uncertainty still advises caution [4]. For investors, the most traditional strategy for Bitcoin is HODLing, which involves holding the asset in the long term for potential gains. Another popular strategy is Dollar Cost Averaging (DCA), which involves buying fixed amounts of Bitcoin regularly to mitigate volatility.
For those interested in learning more about Bitcoin, the Bitcoin 101 course is available on the website Academy, offering a medium-level education on Bitcoin, including its origins, functionality, and acquisition methods.
[1] Source: CoinDesk [2] Source: Bloomberg [3] Source: Reuters [4] Source: CNBC [5] Source: Forbes [6] Source: Cointelegraph [7] Source: Investopedia [8] Source: The Hill
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