Bitcoin Hits $106,000 as Market Gains Momentum Ahead of Trump’s Inauguration
Bitcoin surged above $105,000, briefly touching $106,000 on Saturday, as the cryptocurrency market regained strength ahead of Donald Trump’s upcoming inauguration for a second term.
The former U.S. president has shown strong support for the digital asset industry, boosting investor confidence. At the time of reporting, Bitcoin was trading at $105,047, up 1.86%, with a fully diluted market cap of $2.08 billion.
The week started on a weak note, with Bitcoin dropping below $90,000 due to uncertainty surrounding U.S. Federal Reserve policies. However, optimism returned after reports of a possible policy rate cut, pushing Bitcoin past $99,000 and eventually over the $100,000 mark.
Historically, lower interest rates have enhanced Bitcoin’s appeal, and traders capitalized on the opportunity this week.
Investor sentiment also grew stronger due to Trump’s anticipated pro-crypto agenda during his first week back in office, a move welcomed by the crypto community.
Unlike previous rallies, this week’s growth was fueled by significant capital inflows into Bitcoin-focused exchange-traded funds (ETFs). By midweek, investors had poured over $1.3 billion into these funds, reversing earlier outflows and accelerating the rally.
