Ahead of Donald Trump’s inauguration this week, bitcoin reached a new record high of around US$109,000 in anticipation of what is widely being regarded as a “pro-crypto” leadership change.
On Thursday afternoon, the cryptocurrency was trading above US$102,000 and was up more than 157 per cent over the last 12 months.
Now, bitcoin could be on track to hit US$120,000, with institutional and retail buyers supporting the rally, Global X’s Billy Leung said.
“The road for bitcoin to reach US$120,000 is plausible, supported by increasing adoption from institutional investors and Trump’s stated commitment to making the US a global crypto hub,” Leung added.
“Speculation around a potential executive order designating digital assets as a ‘national priority’ has fuelled optimism.”
According to the investment strategist, such a move could bolster investments into digital infrastructure and provide a clearer regulatory framework, attracting further institutional participation.
However, he reiterated that the cryptocurrency market is highly volatile, with rapid price movements a real possibility.
“Bitcoin’s current valuation reflects high expectations, leaving little room for error. Market volatility, macroeconomic shifts and potential delays in regulatory clarity remain key risks. Nonetheless, bitcoin’s role as the cornerstone of the digital financial ecosystem positions it as a unique asset, well-placed to navigate these challenges,” Leung said.
At the same time, he conceded that the lack of immediate announcements during the inauguration has introduced near-term uncertainty, with bitcoin retracing to US$103,500 soon after hitting its record high.
Namely, Trump, who pledged to make the US the “crypto capital of the planet” didn’t touch on the subject in his inauguration speech, nor did cryptocurrency feature in the sea of executive orders he signed on his first day in the Oval Office.
However, the US Securities and Exchange Commission’s acting chairman, Mark T Uyeda, did announce the launch of a dedicated cryptocurrency task force, tasked with developing a “comprehensive and clear regulatory framework” for cryptocurrency assets.
Responding to this news, local exchange BTC Markets commended the move.
“We applaud the SEC’s proactive stance in seeking technical assistance from Congress during this crucial regulatory evolution. These efforts reflect an emerging recognition of the integral role digital assets play in modern financial systems,” BTC Markets’ head of finance, Charlie Sherry, said.
According to Sherry, Australia has something to learn from the developments taking place across the pond.
“While local efforts are underway, they need to accelerate to remain globally competitive. We are at a pivotal moment for the sector’s future, requiring decisive action and strategic foresight,” he said.
“The global momentum around blockchain, tokenisation, and cryptocurrency cannot be ignored. Over a quarter of Australians already engage with digital assets, viewing them as transparent, inclusive alternatives to traditional systems.”
Crypto.com Australia head Vakul Talwar agreed that cryptocurrency’s positive reaction to Trump’s re-election has prompted a renewed interest among Australian investors.
“Consumer confidence in the industry is higher as we head into 2025, with a recent survey we conducted finding that 75 per cent of Australian users on our platform believe that the crypto market will fare better this year,” Talwar said.
“For the Australian market, a rise in crypto adoption is the other driving force behind industry growth here. This stems from consumers looking to the asset class as both a means of investing and as a way to transact for everyday goods and services.”
As such, Talwar expects cryptocurrency adoption rates in Australia to increase at an accelerated pace.
Echoing Sherry, the Crypto.com exec believes that the US’ increasing embrace of cryptocurrency is something that local regulars should take note of.
“In order to encourage domestic investment and further consumer adoption, the government must make this a priority in 2025.”
In conversation with InvestorDaily earlier this week, Magnet Capital’s Egor Sidelska agreed that Australia risks being sidelined.
“The problem is Australia still doesn’t care. I think that Australians are going to miss this entire market simply by just sitting on the sidelines and just not being interested,” he said on Monday.
Acknowledging that Australia has historically enjoyed long-term success with traditional asset classes like property and shares, Sidelska highlighted that the cryptocurrency market, comparatively, moves very quickly.
“You have to really care in order to follow this market. So unfortunately, we’re just not in a position to do that. We don’t even have the right insurances in place for wealth advisors to have a stance on this.”
“Something really drastically has to change, either from a policy standpoint or from a regulatory standpoint … otherwise, you know, you’re really missing out,” Sidelska said.
In December the Australian Securities and Investments Commission released a consultation paper aimed at providing greater clarity on how the current financial product definitions apply to digital assets and related products.
