Bitcoin Surges Amid Reports of Pro-Crypto Executive Order by Trump

Bitcoin regained momentum on Friday, riding the wave of a broader crypto market rally, as speculation emerged that President-elect Donald Trump could issue an executive order prioritising cryptocurrency on a national level.

The leading digital asset climbed over 4%, reaching $104,672.37, as per Coin Metrics data. Meanwhile, the CoinDesk 20 index, which tracks the performance of top cryptocurrencies, rose by 3%, building on a 4% gain from the previous day.

Shares of major cryptocurrency exchanges such as Coinbase and Robinhood also advanced by more than 4%, reflecting increased trading activity in smaller, high-risk altcoins. Litecoin, for instance, surged an impressive 30% over the past 48 hours, highlighting growing investor appetite for alternative cryptocurrencies ahead of Trump’s inauguration.

Policy Momentum Boosts Market Confidence

The surge in the market comes on the back of a Bloomberg report suggesting that Trump may soon establish the long-promised Crypto Advisory Council, a move that would provide the industry with a formal voice within the federal government. Simultaneously, the New York Times reported discussions within Trump’s team regarding the creation of a national Bitcoin reserve, potentially to be outlined in an executive order.

While these developments are raising optimism within the crypto community, some analysts caution that tangible market benefits from a crypto-friendly White House and Congress may not materialise immediately. Despite this, the sector views these early signals as paving the way for long-term innovation and adoption.

Altcoins Poised to Benefit from Regulatory Clarity

Although Bitcoin remains the market leader, analysts note that smaller cryptocurrencies and blockchain projects could benefit even more from favourable regulation. These assets have faced increased scrutiny and regulatory challenges under the Biden administration, including SEC lawsuits and limited access to traditional banking services. A shift towards clear and supportive policies could provide these projects with much-needed breathing room.

For Bitcoin, however, the potential establishment of a national reserve could act as a powerful catalyst for further price gains. Some market watchers suggest such a move could trigger a meteoric rally for the cryptocurrency.

Macroeconomic Factors at Play

Bitcoin’s recent price action has closely tracked traditional financial markets, reflecting ongoing investor sentiment around macroeconomic trends. Since late December, the cryptocurrency has been in a consolidation phase, following hawkish inflation warnings from Federal Reserve Chair Jerome Powell. However, a series of cooling inflation reports this week has helped ease concerns, driving renewed interest in risk assets.

In addition, Bitcoin exchange-traded funds (ETFs) have attracted significant inflows, with over $1 billion pouring into these products in just two days.

Looking Ahead

Market participants anticipate that any pro-crypto announcements from the incoming administration could drive Bitcoin to fresh all-time highs. The cryptocurrency’s current record of $108,327.01, set on 17 December 2024, appears within striking distance, with Bitcoin already up over 11% in 2025.

“The combination of a new administration and fresh leadership at the SEC creates a window of opportunity for cryptocurrency innovation,” remarked Kenneth Worthington, an analyst at JPMorgan, in a recent note. However, Worthington tempered expectations, suggesting that the smaller market capitalisation and reduced investor interest in altcoins may limit the broader impact of new regulatory developments.

As the crypto market braces for potential announcements next week, optimism remains high that a shift in U.S. policy could mark the beginning of a new era for the industry.