5 min readBitcoin is holding steady on Wednesday after reaching a record high of 94k earlier in the day, as the mood toward crypto remained upbeat.
Bitcoin has risen over 30% in the past two weeks since Trump won the 2024 presidential election. Hopes of crypto-friendly regulation have drawn more institutional capital into crypto, and demand for Bitcoin exchange-traded funds has soared.
Spot BTC ETFs are on track to book the seventh straight week of net inflows, marking the strongest run of weekly inflows since February and March when Bitcoin reached record highs of 73,750.
Meanwhile, sentiment is also being boosted by MicroStrategy’s purchases. The world’s largest corporate holder of Bitcoin bought $4.6 billion worth of the token in the past week, even with prices trading at record highs, a move which has caught the attention of many.
Trump’s Treasury Secretary selection
However, momentum in the trump trade is starting to slow as attention turns Towards Trump’s cabinet selection and what policies will entail for crypto when Trump takes office in two months.
The crypto market is particularly interested in Trump’s selection for the position of Treasury Secretary, who will arguably have a significant influence over crypto’s future. The four candidates running for the position are Howard Lutnick, CEO of Cantor Fitzgerald; Scott Bessent, founder of Key Square Capital Management; Mark Rowan, CEO of Apollo Global Management; and Kevin Warsh, a former Fed official. While all have spoken positively about crypto, some are more pro-crypto than others.
The risks
The standout risk for crypto will be if Trump doesn’t deliver on the promises that he made during the election campaign. Bitcoin’s incredible rally has been owing to the excitement and optimism surrounding Trump’s strong crypto support. If he fails to live up to expectations and deliver, the downside could come quickly. In the eyes of the crypto sector, the first test for Trump will likely be his appointment of Treasury Secretary. Any sense of disappointment with regard to how crypto-friendly the Treasury Secretary is could drag on Bitcoin’s price.
Nvidia earnings, AI coins in focus
After the US closing bell, AI darling Nvidia will report earnings in what is widely considered a litmus test of the AI and big data trade.
AI and big data altcoins such as Render, Near, and Fetch.AI have risen over the past week ahead of these key earnings from Nvidia. These results could be key in shaping the market sentiment towards the AI trade heading into the end of the year.
Render chart
Wall Street is bullish on Nvidia ahead of the earnings, with 67 of 75 analysts tracked by Bloomberg rating it a buy. However, in recent earnings releases, AI coins have often fallen in the immediate aftermath, so be prepared for volatility.
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