Bitcoin has been on an astounding rollercoaster ride lately, with Friday marking a significant milestone as it surged over the $105,000 mark for the first time in 2025. This upward movement follows a brief spell where it dipped below $90,000, a move that had many analysts wondering about its long-term trajectory. As the vibrant world of cryptocurrency changes rapidly, the optimism surrounding Bitcoin is largely due to the upcoming influence of President-elect Donald Trump and his promises to revamp the stance of the U.S. on digital assets.
Trump’s Influence on Bitcoin: A Game Changer?
President-elect Trump’s proposed policies have ignited hope among crypto enthusiasts. He promises to make the United States a global leader in cryptocurrency, which includes establishing a national bitcoin stockpile. This marks a stark contrast to the regulatory environment seen under President Biden, which many in the industry viewed as restrictive. On the horizon is an executive order that Trump is reportedly preparing, aimed at prioritizing digital assets, backed by the creation of an advisory council filled with industry veterans.
The sentiment is palpable—the crypto community has begun rallying around Trump, reflected by hefty donations from major firms like Circle and Ripple. This week’s planned "Crypto Ball" in D.C. underscores this budding relationship between the crypto industry and political power, showcasing an unprecedented level of influence that could shape future regulations and foster a positive environment for innovation.
XRP Breaks New Ground
Not to be outdone, XRP, the token linked to Ripple Labs, has made headlines by climbing nearly 40% to hit an all-time high of $3.4 this week. This spike has drawn considerable attention and pushed XRP into a market capitalization of about $190 billion. Many are linking this surge to the speculation surrounding the Trump administration’s potentially kinder approach to crypto regulations.
Ripple CEO Brad Garlinghouse noted in a recent interview that his dinner with Trump at Mar-a-Lago included discussions about a federal stockpile for cryptocurrencies, XRP included. In addition, Ripple unveiled RLUSD, a new stablecoin aimed at further anchoring its presence across cryptocurrencies, launching on both the XRP Ledger and Ethereum.
The past few years haven’t been smooth sailing for Ripple, especially following a lawsuit by the SEC in 2020 claiming unregistered offerings. However, a U.S. district court ruling determined that while XRP is considered a security when sold to institutional investors, it is not the same for retail investors—a partial win in the eyes of many. Although the SEC is appealing this decision, prospects may change with the anticipated appointment of a more crypto-friendly SEC Chair.
Coinbase Reopens Bitcoin-Backed Loans
In a bold move, Coinbase has revived its bitcoin-backed loan program, allowing U.S. customers (with the exception of those residing in New York) to borrow up to $100,000 in stablecoins leveraging their bitcoin holdings. Here’s how it works:
- Your Bitcoin as Collateral: When you opt for a loan, your bitcoin will be wrapped into “cbBTC” and transferred to Morpho, a lending protocol on Coinbase’s own blockchain.
- Quick Access to Funds: This process is designed to happen in less than a minute, allowing you to receive the desired USDC in your Coinbase account promptly.
- Collateralization: The loans come with the caveat that they must be over-collateralized. If your loan value inches toward 86% of your collateral’s worth, your bitcoin may be liquidated to cover the borrower’s balance plus a penalty fee.
Despite stumbling with a similar initiative in 2020, Coinbase’s renewed strategy seems more aligned with current DeFi trends, demonstrating a commitment to growth and service precision. The plan is to expand collateral options and make the program available to more markets soon.
The Crypto Climate: What’s Next?
Here’s a quick glance at the broader landscape:
| Aspect | Current Trend | Potential Impact |
|---|---|---|
| Pension Funds | Interest in crypto increases | Greater legitimacy and adoption |
| Banks | Gradually warming to crypto firms | Enhanced partnerships and services |
| Political Influence | Crypto party to celebrate Trump’s presidency | Regulatory shifts toward a favorable environment |
Conclusion: Seizing the Moment
Bitcoin’s ascent above $105,000 is a thrilling reminder of the market’s volatility and potential. With Trump poised to introduce policies that could reshape the crypto landscape significantly, now could be the time for investors to engage and explore the growing landscape.
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