Image credit: Grok/X

Bitcoin surged to its highest price in nearly a month late Friday, approaching $106,000 as anticipation builds around President-elect Donald Trump’s upcoming inauguration.

The leading cryptocurrency’s rally comes amid speculation that Trump’s administration could introduce crypto-friendly policies, including regulatory changes at the SEC and the potential creation of a national Bitcoin reserve.

Bitcoin peaked at $105,842 on Friday before settling at around $103,600 by 9 a.m. GST on Saturday, marking a nearly 5% increase over the past day.

The cryptocurrency is now just 3% shy of its all-time high of $108,135, reached in December. Over the past week, Bitcoin has climbed nearly 12%, bouncing back from a brief dip below $90,000 earlier in the week when market jitters intensified.

Optimism around Trump’s perceived pro-crypto stance has driven much of Bitcoin’s recent momentum. However, analysts caution that delays in implementing promised initiatives could dampen investor sentiment.

BRN analyst Valentin Fournier warned in a note on Friday that the market’s expectations might be overly optimistic.

“Delays in implementing proposed measures could trigger a ‘sell the news’ reaction, potentially disrupting Bitcoin’s current positive momentum,” Fournier wrote.

As a decentralized asset, Bitcoin trades 24/7, unlike traditional markets that observe holidays. With U.S. stock markets closed Monday for Martin Luther King Jr. Day, Friday marked the last major trading session before Trump’s inauguration.

Steven Lubka, head of private clients at Swan Bitcoin, noted on X that traders were likely positioning themselves ahead of Trump’s first day in office.

Bitcoin’s recent rise also reflects a cooling of inflation concerns, which had weighed on markets earlier in the month. The cryptocurrency’s continued rally highlights growing investor confidence in its role as both a hedge against economic uncertainty and a key asset in the evolving digital economy.

All eyes now turn to Washington as Trump prepares to assume the presidency, with Bitcoin’s price trajectory closely tied to the administration’s first moves on cryptocurrency regulation.

‍