Over the past 24 hours, Bitcoin’s price journey has been dramatic, driven by key economic data and the imminent inauguration of Donald Trump, who is making waves with his pro-crypto policies. 

The December U.S. Consumer Price Index (CPI) report revealed an annual inflation rate of 2.9%, slightly above the Federal Reserve’s 2% target, fueling speculation about potential interest rate cuts. This prospect, viewed favorably by crypto investors, catapulted Bitcoin to $99,032 in early trading before it smashed through the $100K barrier just hours later.

Bitcoin hits $100,000, Source: Bitcoin Liquid Index

Trump’s Pro-Crypto Agenda Fuels Optimism

Adding fuel to Bitcoin’s meteoric rise is Donald Trump’s imminent return to the presidency, coupled with reports of executive orders designed to bolster the crypto industry. Trump’s team has hinted at measures to reduce regulatory hurdles for blockchain innovation and potentially designate Bitcoin as a key component of the nation’s economic strategy. The crypto community has rallied around these announcements, with analysts predicting that Trump’s policies could usher in a golden age for digital assets.

“Bitcoin hitting $100,000 is a testament to its growing legitimacy as a global reserve asset and a hedge against inflation,” said Samson Mow, CEO of Bitcoin adoption firm JAN3. “With pro-crypto leadership in Washington, the sky’s the limit for where Bitcoin can go.”

Bitcoin’s Wild Ride to $100K

The road to this landmark price has been filled with twists and turns. Just yesterday, Bitcoin briefly dipped below $90,000 before rebounding sharply as anticipation grew around Trump’s policy announcements. Softer-than-expected Producer Price Index (PPI) data also provided a tailwind, suggesting inflationary pressures may be easing. Other cryptocurrencies joined the rally, with XRP and Dogecoin leading gains of up to 10%.

Now trading solidly above $100,000, Bitcoin is up nearly 5% in the past 24 hours, and analysts believe this could be the beginning of the next stage of the Bitcoin bull run. Bitwise is doubling down on its Bitcoin price prediction that suggests Bitcoin could go as high as $200,000 in 2025, fueled by an influx of institutional capital and favorable macroeconomic conditions.

Source: Bitwise

A Global Shift Toward Bitcoin Reserves

Bitcoin’s ascent isn’t just an American story. Governments worldwide are increasingly exploring its potential as a strategic reserve asset. El Salvador, the pioneer of Bitcoin adoption as legal tender, has already amassed over 6,000 BTC. Meanwhile, nations like Brazil and the Czech Republic are actively debating Bitcoin’s role in their sovereign reserves, citing its ability to stabilize economies and shield against geopolitical risks. All nation-states will be watching Trump, to see if he announces a U.S. Bitcoin Strategic Reserve in the early days of his presidency.

What’s Next for Bitcoin?

While skepticism persists in some quarters, the momentum behind Bitcoin is undeniable. Trump’s inauguration on January 20 is expected to amplify the spotlight on crypto, with his administration signaling a robust commitment to blockchain innovation. Analysts are closely watching the Federal Reserve’s next moves, as monetary policy remains a key driver of Bitcoin’s price dynamics.

As Bitcoin crosses the $100,000 mark, the excitement is palpable. For many, this milestone represents not just a price point, but a validation of Bitcoin’s growing role in the global financial ecosystem. With a pro-crypto president taking office and global adoption accelerating, the future looks brighter than ever for the world’s first cryptocurrency.

Buckle up—2025 might just be the year Bitcoin becomes the cornerstone of a new economic era.