Bitcoin re-entered the $105,000 territory and briefly touched $106,000 on Saturday as the cryptocurrency market regained momentum ahead of Donald Trump’s second-term inauguration.
The former US president has heavily signaled support for the digital asset industry.
The flagship cryptocurrency stood at $105,047 at the time of filing, up 1.86 percent with a fully diluted market cap of $2.08 billion on Sunday.
The week began sluggishly for Bitcoin as it fell below $90,000 amid uncertainty over US Federal Reserve policies. However, reports of a policy rate cut revived a positive momentum.
Historically, lower interest rates have bolstered Bitcoin’s appeal, and traders seized on the opportunity this time as well, driving the price past $99,000 before it crossed the $100,000 milestone.
Investor optimism was further fueled by Trump’s planned pro-crypto stance in his first week back in office. The crypto community has welcomed Trump’s presidency.
Unlike past rallies, this week’s growth was amplified by big capital inflows into Bitcoin-focused exchange-traded funds (ETFs). By midweek, investors had injected over $1.3 billion into these funds and reversed earlier outflows.
Editorial & Legal Practice Group
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