Investing.com– Bitcoin rose on Tuesday, extending recent gains and re-entering six-figure price territory after a New Year’s drop, with markets now anticipating the imminent inauguration of President-elect Donald Trump.
Sentiment was also supported by MicroStrategy Incorporated (NASDAQ: ) which bought another 1,070 Bitcoins, further strengthening its status as the world’s largest corporate holder of the cryptocurrency.
it rose 2.1% to $101,711.6 by 01:02 ET (0602 GMT), after briefly rising above $102,000 earlier in the day.
The broader crypto markets have also advanced in tandem with Bitcoin.
Trump’s politics in focus as inauguration approaches
Crypto traders were squarely focused on what Trump’s policies would mean for the crypto industry, given that he promised to make America the “crypto capital” of the world.
Trump has nominated several crypto-friendly candidates to key cabinet and regulatory positions, most notably respected attorney Paul Atkins to lead the Securities and Exchange Commission.
But uncertainty over Trump’s broader economic policy grew this week after the president-elect denied a Washington Post report that his administration would impose less stringent trade tariffs than previously announced.
Trump has promised to impose high tariffs on several major trading partners, particularly China. Such a scenario could potentially increase global trade tensions and put pressure on economic growth.
Fears of a trade war are also expected to affect risk appetite, which could reduce the cryptocurrency’s appeal.
Bitcoin is expected to gain ahead of Trump’s inauguration on January 20, but could face consolidation on a lack of cues later in the month.
MicroStrategy buys more Bitcoin
Bitcoin sentiment was also boosted by MicroStrategy adding more than 1,000 tokens to its Bitcoin inventory.
The stock is largely considered a replacement for Bitcoin and has seen stellar growth through 2024, even outperforming Bitcoin in percentage terms.
Benchmark analysts said the outlook for the stock remains bullish, praising its strategy of growing its bitcoin holdings faster than diluting its holdings.
Today’s Crypto Price: Altcoins Follow Bitcoin’s Recovery
Broader cryptocurrency prices rose in tandem with Bitcoin. The world’s No. 2 cryptocurrency lagged behind, falling slightly to $3,674.35, while the world’s No. 3 cryptocurrency rose 1.2%.
and ranged from flat to positive, while rising nearly 2% among meme tokens.
Most altcoins have also seen incredible gains through 2024, as markets bet that friendlier US regulations will help spur more value in cryptocurrency outside of Bitcoin.
