Crypto and equities markets surged, with Bitcoin making up for the losses from its previous day’s pullback. As U.S. stock markets were closed on January 20 for Martin Luther King Jr. Day, the optimism surrounding a business-friendly Trump presidency was evident when markets opened. The S&P 500, DOW, and QQQ all posted significant gains, reflecting investor confidence in the new administration’s economic policies.
The U.S. Dollar Index (DXY) saw a notable decline, dropping 1.27% from its two-year high of 110 on January 15, settling just above 108. In the final days of 2024 and into 2025, the market had been jittery over the transition to President Trump’s economics-focused cabinet. However, the smooth transition and a cooling of geopolitical tensions resulted in a reduction in U.S. Treasury yields and the DXY’s decline. Investors have expressed optimism about Trump’s economic strategy, with many industry leaders backing his plans.
Bitcoin (BTC) also reflected this positive sentiment, gaining 3.8% to reach a high of $107,240 on January 21. Although BTC fell short of surpassing its January 20 all-time high of $109,588, the rebound was a welcome sign for investors, especially after the crypto community’s disappointment over Trump’s lack of crypto-related announcements on Inauguration Day. Despite these concerns, the market’s outlook remained positive due to favorable developments in the U.S. regulatory landscape.
On the same day, the U.S. Securities and Exchange Commission (SEC) took a significant step toward reforming crypto regulations by announcing the formation of a new crypto task force. This initiative, led by crypto advocate Commissioner Hester Peirce, aims to create a clearer regulatory framework for digital assets. Additionally, Bank of America CEO Brian Moynihan’s remarks at the World Economic Forum, stating that banks could support crypto payments with regulatory clarity, further bolstered confidence in the crypto market.
Corporations buying bitcoin is a much bigger deal than most people think. https://t.co/DBLx5fz45q
— Matt Hougan (@Matt_Hougan) January 7, 2025
These developments highlight a growing belief in the potential of Bitcoin and digital assets, supported by both governmental and corporate leaders.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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