Investor appetite for smaller cap, higher-risk cryptocurrencies has intensified ahead of the upcoming presidential inauguration. With the broader crypto market on an upward trajectory, reports suggest that the incoming administration may introduce a crypto advisory council, further fueling market optimism. Notably, Litecoin and XRP have surged in double digits over the past two days, while the CoinDesk 20 index reported a 1% increase following a 4% rise on Thursday.
Bitcoin, the flagship cryptocurrency, rejoined the rally on Friday amidst speculation about a possible executive order concerning digital currencies. As of the latest data from Coin Metrics, Bitcoin's price increased by nearly 2%, reaching $102,639.13. Meanwhile, Bitcoin ETFs have experienced substantial inflows, exceeding $1 billion in just two days, indicating strong investor interest.
A Bloomberg report hinted at discussions within the new administration regarding a potential executive order that might include a bitcoin stockpile. This development coincides with rising expectations that announcements from the incoming administration next week could propel Bitcoin beyond its current high. The cryptocurrency achieved its record price of $108,327.01 on December 17 and has since risen 9% in 2025.
JPMorgan analyst Kenneth Worthington highlighted the impact of the political landscape on cryptocurrency innovation.
"The new administration and a new SEC chairman opens the door for new opportunity in cryptocurrency innovation," – JPMorgan analyst Kenneth Worthington
While this optimism is palpable, Worthington also cautioned that the market might not immediately feel the effects of a pro-crypto Congress and White House. Nonetheless, this potential shift in policy could benefit coins and crypto projects outside of Bitcoin by providing clear and supportive regulatory frameworks.
Shares of prominent exchange operators like Coinbase and Robinhood reflected this bullish sentiment, advancing about 3% each in premarket trading. However, it is essential to note that the crypto market has been in a phase of consolidation since late December. This period of stabilization followed Federal Reserve Chair Jerome Powell's warnings about inflation, which initially dampened investor enthusiasm.