After a concerning dip last week, BTC surges past USD 100k, trading at USD 103.4k. We saw crypto leaders sweating last week when BTC crashed to USD 90k after a Trump-induced rally. While some experts expected it to further tumble to USD 80k, bn’aire crypto guru Michael Novogratz, was confident that Trump’s pro-crypto cabinet would have BTC breaking USD 100k in a matter of time. And he was right.

Call it the upside of the risk of investment. This is a result of expected US interest rate cuts in 2025, as well as the anticipated approval of BTC-focused ETFs, which is causing a growing institutional interest in cryptocurrencies, says Reuters.

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Why the interest rate matters: The current implied chance of a rate cut stands at 75%, which makes riskier investments like stocks and cryptocurrency more attractive. Along with the BTC hike, stocks including the S&P500, Nasdaq, and Dow have all hit record highs — signalling this growing confidence in the US economy.

But not everyone is optimistic: “Everything is going the right way, right now,” said Francois Savary, Chief Investment Officer at a wealth management firm. Savary believes that once Trump takes office, people will realize that his economic policies regarding crypto “could have some potential inflationary impact.”

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