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The cryptocurrency market is getting excited as Donald Trump's inauguration approaches on Monday, January 20, 2025. Bitcoin crosses the $100,000 mark, currently being traded at $102,938. The investor optimism and expectation of a better regulatory environment under the incoming administration are all reflected in this milestone.
And the excitement in broader cryptocurrency extends beyond Bitcoin, most crypto coins and tokens also get big gains like Ethereum and BNB. People credit it to anticipated policies by Trump's administration like the appointment of crypto-friendly officials and executive orders for blockchain innovation.
For companies that applies Bitcoin as a reserve like MicroStrategy (NASDAQ:MSTR), the rally presents challenges and opportunities. MicroStrategy recently acquired 2,530 additional bitcoins, bringing its total holdings to nearly 450,000 bitcoinsvalued at approximately $41 billion. The bullish moment of Bitcoin helped bolster the company's asset base and the crypto surge has yet to translate into the stock price.
As Trump takes office, the event would cause a wave on the crypto market and companies like MicroStrategy, which have made bold bets on Bitcoin.
Trump administration would reform the SEC and promise better trading regulations for crypto holders, and the inauguration is anticipated to cause another bull boost, but sometimes big news also holds "Sell the news" potential that would cause a short-term pullback or even a correction. So, please trade wisely on the event.
This article first appeared on GuruFocus.