Traders have been closely watching signals from the new administration, which has hinted at hugely supportive policies toward digital assets.

By Monday morning, Bitcoin has surged to around $108,807, a sudden new all time high for the Bitcoin price ahead of Trump’s big day. Despite a turbulent start to the week—falling below $90,000 due to uncertainty over Federal Reserve policies—reports of a potential policy rate cut quickly reversed the downward trend. Historically, low interest rates have boosted Bitcoin’s appeal, drawing traders in once again.

A new all time high for Bitcoin: Source: BNC

Investors’ enthusiasm also surged as the cryptocurrency community welcomed Trump’s presidency, anticipating crypto-friendly initiatives in his first week back in office. Additionally, the uptick in large capital inflows into Bitcoin-focused exchange-traded funds (ETFs) helped propel its ascent. By midweek, more than $1.3 billion had been funneled into Bitcoin ETFs, reversing the outflows seen earlier in the month.

Trump’s Policy Signals and Federal Reserve Moves

Economic observers credit the most recent rally to a combination of policy expectations and broader market trends. The potential for the Federal Reserve to ease interest rates appears to have bolstered investor confidence in risk assets, including cryptocurrencies. Given Bitcoin’s fixed supply and historically robust performance in low-rate environments, market participants see an opening for further gains.

Traders are particularly focused on the possibility that President Trump’s administration may introduce regulations favorable to the digital asset sector. His public support for the crypto industry has led many long-term investors to remain optimistic about Bitcoin’s sustained growth. As the inauguration nears, the market continues to reflect these sentiments in strong trading volumes and renewed institutional interest.

Institutional Shifts and Expert Insights

Institutional investors also appear to be rebalancing portfolios to include more Bitcoin. This includes MicroStrategy’s CEO, Michael Saylor, who has suggested that the company may continue to purchase Bitcoin for the 11th consecutive week and recommended France also join the Bitcoin train, further solidifying their commitment to the digital asset.

Source: X

Having already accumulated over 100,000 BTC in reserves, MicroStrategy’s continued interest underscores the executive team’s faith in Bitcoin as a “reliable store of value.”

Meanwhile, multiple billionaire investors have been reducing positions in established tech stocks like Nvidia, redirecting capital toward Bitcoin-focused ETFs such as iShares Bitcoin Trust (IBIT). According to recent 13F filings, Millennium Management’s Israel Englander trimmed his Nvidia stake by 12.5% while boosting his holdings of IBIT by 12.6 million shares.

Capula Management’s Yan Huo reduced Nvidia exposure by 27.7% and simultaneously acquired 1.1 million more IBIT shares. Analysts point to a broader shift, suggesting that some high-profile investors foresee the top cryptocurrency outpacing Nvidia over the long term.

Cathie Wood of Ark Invest projects Bitcoin’s potential price to reach $3.8 million by 2030, citing its limited supply and growing institutional acceptance. Although this forecast remains speculative, it signals persistent optimism in the broader crypto market. She views Bitcoin’s finite quantity and historically high returns as catalysts that may amplify further mainstream adoption.

Importantly, market watchers are keeping a close eye on Trump’s next steps, Federal Reserve policies, and institutional moves in the cryptocurrency sector. While it remains to be seen if Bitcoin will continue to climb, the alignment of supportive policy signals, capital inflows, and renewed investor interest suggests the flagship cryptocurrency could maintain its momentum for the foreseeable future.