Investing.com– Bitcoin rose on Tuesday, extending recent gains and re-entering six-digit price territory after a new year rout, with markets now looking to President-elect Donald Trump’s upcoming inauguration.
Sentiment was also supported by MicroStrategy Incorporated (NASDAQ:MSTR) buying another 1,070 Bitcoin, further reinforcing its status as the world’s biggest corporate holder of the crypto.
Bitcoin rose 2.1% to $101,711.6 by 01:02 ET (06:02 GMT), having briefly risen past $102,000 earlier in the day.
Broader crypto markets also advanced in tandem with Bitcoin.
Trump policies in focus as inauguration looms
Crypto traders were squarely focused on what Trump’s policies will entail for the crypto industry, given that he has vowed to make America the “crypto capital” of the world.
Trump nominated several crypto-friendly candidates to key cabinet and regulatory positions, most notably respected lawyer Paul Atkins to lead the Securities and Exchange Commission.
But uncertainty over Trump’s broader economic policies grew this week after the President-elect denied a Washington Post report that his administration will impose less strict trade tariffs than previously signaled.
Trump has vowed to impose steep tariffs on several major trading partners, especially China. Such a scenario stands to potentially ramp up global trade tensions and pressure economic growth.
Fears of a trade war are also expected to dent risk appetite, which could diminish crypto’s appeal.
Bitcoin is expected to gain in the lead-up to Trump’s inauguration on January 20, but could face consolidation amid a dearth of cues later in the month.
MicroStrategy buys more Bitcoin
Sentiment towards Bitcoin was also boosted by MicroStrategy adding more than 1,000 tokens to its Bitcoin hoard.
The stock is regarded largely as a proxy for Bitcoin, and is sitting on a stellar run-up through 2024, having even outpaced Bitcoin’s performance in percentage terms.
Benchmark analysts said that the outlook for the stock remained upbeat, lauding its strategy of growing its Bitcoin holdings faster than its share dilution.
Crypto price today: altcoins track Bitcoin rebound
Broader crypto prices rose in tandem with Bitcoin. World no.2 crypto Ether lagged, falling slightly to $3,674.35, while world no.3 crypto XRP rose 1.2%.
Solana, Cardano and Polygon moved in a flat-to-positive range, while among meme tokens, Dogecoin rose nearly 2%.
Most altcoins were also sitting on stellar gains through 2024, as markets bet that friendlier U.S. regulations will help spur more value in crypto beyond Bitcoin.