The anticipation surrounding President-elect Donald Trump's potential executive order to prioritize cryptocurrency as a national policy has been a significant driver of Bitcoin's price movement today. Reports suggest that Trump may announce the creation of a strategic Bitcoin reserve and a crypto advisory council, which has fueled optimism in the market. This comes amid expectations of a more favorable regulatory environment for digital assets under the new administration, contrasting with the previous administration's stringent stance. However, despite these positive developments, the muted 'Coinbase Premium' indicates a lack of excitement among U.S. investors, suggesting that much of the optimism may have already been priced in during the November-December rally.
In addition to the political developments, Bitcoin ETFs have seen a resurgence in demand, with significant inflows recorded as Bitcoin solidified its position above $100,000. BlackRock's IBIT ETF, in particular, attracted substantial investor interest, drawing in over $500 million in a single day. This renewed interest in Bitcoin ETFs reflects growing confidence in the asset class, driven by expectations of regulatory clarity and strategic initiatives under the incoming administration. However, Grayscale's GBTC ETF experienced outflows, highlighting the varied investor sentiment across different funds.
Bitcoin's price has risen by 2.15% today, reaching a high of $102,130.37.