Bitcoin Eyes $100,000 as Trump Plans Crypto Reforms

Bitcoin prices have rebounded sharply, nearing $100,000, after a brief downturn raised fears of a crypto crash. The resurgence comes as Donald Trump, often referred to as the “crypto president,” prepares to re-enter the White House with sweeping executive orders aimed at revitalizing the digital asset industry.

Day-One Crypto Orders: A Game Changer?

On January 20, Trump is expected to issue several crypto-related executive orders, with one rumored to trigger a significant bitcoin price rally. These measures may address pressing issues like de-banking and the repeal of SAB121, a controversial accounting policy requiring banks to classify bitcoin and crypto holdings as liabilities on their balance sheets.

“The Trump team has made it very clear that this is a priority,” an anonymous source told the Washington Post.

Inflation Data Boosts Bitcoin

Bitcoin’s recent surge follows the release of U.S. inflation data, which showed core inflation coming in slightly below expectations. This has fueled speculation that the Federal Reserve might reduce interest rates through 2024, increasing liquidity in the market.

“Bitcoin is currently testing the $97,000 mark and challenging the 50-day moving average,” noted Alex Kuptsikevich, chief market analyst at FxPro.

Bullish Long-Term Projections

Despite the volatility, experts remain bullish on bitcoin’s long-term trajectory. Geoff Kendrick, head of crypto research at Standard Chartered Bank, reaffirmed his $200,000 price target by 2025, citing anticipated institutional inflows under Trump’s administration.

“We would recommend accumulating longs again,” Kendrick wrote, emphasizing bitcoin’s potential as risk appetite returns to the market.

SAB121 and Operation ChokePoint 2.0

Key to bitcoin’s future is the potential repeal of SAB121, a Securities and Exchange Commission (SEC) policy introduced in March 2022. Critics, including MicroStrategy’s Michael Saylor, argue that SAB121 unfairly burdens companies by requiring them to report bitcoin as liabilities.

Saylor has identified the repeal of SAB121 as one of three catalysts to push bitcoin prices to $5 million per coin, equating to a $100 trillion market cap.

The other two catalysts—approval of spot bitcoin ETFs and fair value accounting—have already materialized. Spot ETFs, led by BlackRock’s IBIT fund, have seen explosive growth, while the Financial Accounting Standards Board (FASB) adopted fair value accounting for bitcoin in late 2024.

What’s Next for Bitcoin?

As Trump’s administration gears up to implement crypto-friendly reforms, industry leaders like Marc Andreessen and David Sacks are reportedly working behind the scenes to shape U.S. crypto policy.

With market conditions improving and potential regulatory tailwinds, bitcoin’s path to $100,000 seems more plausible than ever. As institutional interest grows and key policies are revised, the broader crypto market may witness a transformative era.