As anticipation builds ahead of Donald Trump's inauguration, investors are showing a growing appetite for smaller cap, higher risk coins. This heightened interest is reflected in the recent double-digit surges of Litecoin and XRP over the past two days. Meanwhile, the broader crypto market also saw gains, with the CoinDesk 20 index rising by 1% following a 4% increase on Thursday.
Bitcoin has joined this rally, with its price climbing nearly 2% to $102,639.13, according to Coin Metrics. Reports from Bloomberg have speculated that Trump could establish a crypto advisory council, fueling optimism among investors. Many believe that coins and crypto projects outside of bitcoin could benefit significantly from clearer and more supportive policies and regulations.
"The new administration and a new SEC chairman opens the door for new opportunity in cryptocurrency innovation." – JPMorgan analyst Kenneth Worthington
Bitcoin's recent uptick comes as investors anticipate announcements from the incoming administration next week that could push its price even higher. Currently, bitcoin is up 9% in 2025, although it remains short of its record high of $108,327.01 set on December 17.
JPMorgan analyst Kenneth Worthington has cautioned that it might take some time before the market experiences the full impact of a pro-crypto Congress and White House. Nonetheless, the possibility of a bitcoin stockpile being part of a potential executive order has stirred excitement. Additionally, Bitcoin ETFs have attracted over $1 billion in inflows over the last two days, further indicating investor confidence.
Shares of major exchange operators such as Coinbase and Robinhood have also risen, advancing about 3% each in premarket trading. This resurgence occurs amid a period of consolidation in the crypto market that began in late December when Federal Reserve Chair Jerome Powell raised concerns about inflation.
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