The cryptocurrency market is experiencing a remarkable surge as Donald Trump's presidential inauguration draws closer, with Bitcoin approaching the historic $100,000 mark and broader market optimism taking hold.
Brad Garlinghouse, Ripple CEO, acknowledged the "Trump effect" on January 5th, noting that 2025 has ushered in a renewed confidence in US digital assets. Ripple's recent performance reflects this sentiment, with the company signing more US deals in the final six weeks of 2024 than in the previous six months.
The total cryptocurrency market capitalization now stands at $3.420 trillion, highlighting the sector's growing mainstream acceptance. Bitcoin closed at $98,313 on January 5th, marking a 0.24% increase, while XRP settled at $2.3986.
Market analysts point to several key factors driving the rally:
- Strong institutional adoption through US Bitcoin spot ETFs, with recent net inflows reaching $908.1 million
- Growing speculation about a potential US Strategic Bitcoin Reserve (SBR)
- Increased cryptocurrency holdings among prominent billionaires, including Elon Musk, Mark Zuckerberg, and Larry Ellison
The anticipated policy shifts under the incoming Trump administration have sparked optimism in the crypto community. The appointment of crypto-friendly figures like Scott Bessent, David Sacks, and Paul Atkins has reinforced market confidence.
A critical deadline approaches for XRP as the SEC must file its appeal-related opening brief by January 15. Market participants expect incoming SEC Chair Paul Atkins to potentially withdraw the appeal, which could pave the way for XRP-spot ETFs.
The combination of institutional investment, regulatory clarity, and strong market sentiment suggests continued growth in the cryptocurrency sector as the new administration takes office.