Bitcoin and Related Stocks Surge: A Deep Dive into Friday's Rally

Bitcoin, the world's largest cryptocurrency by market cap, surged above $104,000 on Friday, leading many to wonder what factors contributed to this significant price increase. The asset, which has not had the best start to 2025, managed to climb back above the six-figure mark on the last trading day before the inauguration of US President-elect Donald Trump. Let's explore the key factors that drove Bitcoin's 5.3% gain on Friday and the impact on related stocks and funds.



1. Interest Rate Cut Expectations: Federal Reserve Chair Jerome Powell hinted at an interest rate cut, which typically boosts cryptocurrency prices due to lower opportunity costs for holding riskier assets like Bitcoin. Powell noted that the labor market has cooled, and "conditions are now less tight than those that prevailed before the pandemic," suggesting a potential rate cut. This expectation of lower interest rates often leads to increased demand for cryptocurrencies, as investors seek higher returns.
2. Stablecoin Market Capitalization: The stablecoin market capitalization reached a new record high of $165 billion during the week, indicating stronger buying pressure and inflows of new capital into the crypto market. This often correlates with higher prices in Bitcoin and the wider crypto market, as stablecoins serve as a gateway for new investors entering the space.
3. Bitcoin Halving Cycle: Bitcoin's four-year halving cycle is a well-known factor that can drive price increases. The next halving event is expected to occur in 2024, which could contribute to the current bullish sentiment. As the supply of new bitcoins decreases, demand for the asset tends to increase, driving up its price.
4. Spot Bitcoin ETF Introduction: The introduction of spot Bitcoin ETFs a year ago has been investor-friendly and has likely contributed to the overall bullish trend in Bitcoin's price. These ETFs provide exposure to the price of Bitcoin, making it easier for investors to gain access to the cryptocurrency market without directly purchasing and storing Bitcoin.
5. Media Attention and Political Support: The media attention and political support for cryptocurrencies, particularly from President-elect Donald Trump, have likely contributed to the positive sentiment surrounding Bitcoin. Trump's planned executive orders and appointments in the crypto industry have raised expectations for a more favorable regulatory environment, which can boost investor confidence and drive up prices.
6. Technical Analysis: Bitcoin's price action has been bullish, with the asset breaking above key resistance levels and maintaining support at crucial price points. This could indicate a strong uptrend and encourage more investors to enter the market, driving prices higher.



The incoming Trump administration's crypto-friendly stance has significantly influenced Bitcoin's price, as seen in the materials provided. The administration's supportive policies and appointments, along with the positive sentiment they have generated, have contributed to a surge in Bitcoin's price and the prices of related stocks and funds.

1. Canaan (CAN) - Canaan, a company that makes specialized computer chips for crypto-mining data centers, saw its stock rise by 18.9% on Friday. Its market cap is around $563 million, and it has gained 8.4% over the past year.
2. MARA Holdings (MARA) - MARA, a leading Bitcoin miner, experienced a 14.6% increase in its stock price on Friday. Its market cap is approximately $6.86 billion, and it has risen by 21% over the past year.
3. Coinbase Global (COIN) - Coinbase, a cryptocurrency exchange, saw its stock rise by 6.6% on Friday. Its market cap is around $74.0 billion, and it has gained 120.9% over the past year.
4. iShares Bitcoin Trust (IBIT) - This Bitcoin ETF gained 5.7% on Friday. Its market cap is approximately $56.2 billion, and it has risen by 147.2% over the past year.

These stocks and funds benefited from the overall rally in the cryptocurrency market, with Bitcoin leading the charge by surging above $104,000. The positive sentiment surrounding the incoming Trump administration's potential crypto-friendly policies likely contributed to this rally.

In conclusion, Bitcoin's 5.3% gain on Friday was driven by a combination of factors, including interest rate cut expectations, stablecoin market capitalization, the Bitcoin halving cycle, the introduction of spot Bitcoin ETFs, media attention, and political support. The incoming Trump administration's crypto-friendly stance has also significantly influenced Bitcoin's price and the prices of related stocks and funds. As the cryptocurrency market continues to evolve, investors should stay informed about these key factors and their potential impact on Bitcoin's price and the broader crypto market.