Bitcoin rallied to $106,300 on Monday morning, setting a new all-time high. While the asset has retraced to $104,768 at the time of publishing this article, it is still up 1.2% in the past 24 hours and has surged 142% since the start of 2024, according to data from CoinGecko.
Bitcoin and other cryptocurrencies have recorded significant gains since last month when Donald Trump won the Presidential election. The President-elect, who is a big fan of crypto, made several promises to the blockchain community and is already working on some, even before officially assuming the oval.
Why Some Analysts Think Trump Will Honor His Crypto Promises
His latest moves have fueled optimism within the crypto walls, with many believing he will fulfill most of his promises. Sygnum’s Digital Asset Research Manager, Lucas Schweiger, says the proposed Crypto Advisory Council is a clear sign that Trump intends to actualize his crypto promises.
For starters, the suggested Crypto Advisory Council will comprise pro-crypto policymakers and industry gurus, whose work will be to advise the President on crypto-related matters. According to the proposal, the Advisory will explore opportunities in crypto and their potential benefits for the American economy.
Meanwhile, Lucas says Trump’s recent meetings with numerous respectable figures in the crypto sector, like Coinbase boss Brian Armstrong, signals his intention to partner with industry players rather than targeting them through enforcement actions.
Crypto Market Prepares for Another Rate Cut This Week
That said, Bitcoin and other top crypto assets could be subject to high volatility later this week as the Federal Reserve holds its last Federal Open Market Committee (FOMC) meeting on Wednesday. According to data from CME’s FedWatch Tool, market participants expect the Fed to slash interest rates by 25 basis points, just like in November.
The rate cuts have proven beneficial for risky assets like digital currencies as borrowing continues to become cheaper, thus encouraging investment. As the Fed embraces a dovish monetary policy, some analysts predict that Bitcoin could end 2024 trading above $120,000. Additionally, they claim that altcoins will witness massive gains in the first quarter of next year when Trump’s administration introduces crypto-friendly regulations, boosting retail investor confidence.
