Bitcoin Surpasses $109,000 Amid U.S. Political and Market Shifts

Bitcoin Soars Past $109,000 on Trump Re-inauguration

Bitcoin’s surge past $109,000 is partially attributed to the inauguration of President Donald Trump for a second term on January 20, 2025. With market participants expecting favorable regulatory measures, the overall sentiment buoyed investor optimism. In July 2024, Senator Cynthia Lummis introduced the “BITCOIN Act”. This proposal requires the U.S. Treasury to purchase 1 million BTC over five years using Federal Reserve and gold revaluation funding.

“The BITCOIN Act gives the United States the framework to build a strategic bitcoin reserve, purchased over time, as a critical part of our nation’s reserve strategy.” — Cynthia Lummis, U.S. Senator

“BITCOIN Act” Sparks Institutional Momentum

The price surge has prompted strong inflows into Bitcoin ETFs and increased buying activity among institutional investors. Experts suggest this is pushing Bitcoin towards long-term targets of $150,000. The proposed “BITCOIN Act” could involve allocating over $100 billion towards Bitcoin purchases, resulting in significant market interest and extensive debates over national reserve strategies.

Comparison to Past Bitcoin Rallies

Past Bitcoin rallies, such as 2021’s all-time highs driven by ETF speculations, have shown similar institutional engagement patterns. Analysts speculate that if the “BITCOIN Act” is enacted, it may lead to further institutional inflows, drawing comparisons to historical surge triggers such as spot ETF approvals and global economic shifts.