The cryptocurrency market gained momentum on Saturday, coinciding with Donald Trump’s second-term inauguration, as Bitcoin surged back into the $105,000 range, briefly reaching $106,000.
The digital asset business has received strong signals of support from the former US president.
Additionally, the market value of the flagship cryptocurrency was $2.08 billion on Sunday, with a fully diluted price of $105,047, an increase of 1.86 percent.
The week started slowly for Bitcoin as it dropped below $90,000 due to doubt about US Federal Reserve policies. However, reports of a policy rate cut reignited the positive momentum.
Traders took benefit of the historically strong demand for Bitcoin during periods of historically low interest rates, pushing the price of the cryptocurrency beyond $99,000 and then over the $100,000 mark.
With Trump’s expected pro-crypto attitude in his first week back in office, investor excitement was further fuelled. The crypto world is pleased about Trump being president.
Unlike previous rallies, this week’s increase was boosted by large capital inflows into exchange-traded funds (ETFs) that focus on Bitcoin. Investors had redirected earlier withdrawals and poured almost $1.3 billion into these funds by midweek.