Bitcoin Surges 30% As Crypto Market Anticipates Policy Shifts

Bitcoin and crypto prices have surged into May, with the bitcoin price increasing almost 30% since falling to April lows and nearing $100,000 per bitcoin. This surge comes as the market anticipates a significant shift in the financial landscape, with major U.S. dollar warnings priming bitcoin for a potential "geopolitical fragmentation megaforce" shock.

David Sacks, known as Donald Trump’s crypto czar, has made a surprising prediction about the future of bitcoin and the crypto market. During an episode of the All In Podcast, Sacks stated that the end of the "war on crypto" and efforts to stop regulatory capture that benefits large incumbents could set the stage for a "Trump boom" in the crypto market. Sacks, who has a history of working with Tesla billionaire Elon Musk and advising him on his takeover of Twitter and its rebranding to X, believes that these changes will take time to play out but could lead to significant growth in the crypto market.

Recent regulatory changes have also contributed to the optimism surrounding the crypto market. The Federal Reserve has rolled back Biden-era rules that prevented Wall Street from fully embracing crypto, while the Trump administration is fast-tracking stablecoin legislation. These developments are expected to rewire the global financial system and could provide a boost to the crypto market.

Despite the recent surge, the bitcoin and crypto market has faced challenges since Trump’s inauguration. The bitcoin price dropped from its January all-time high of almost $110,000 per bitcoin, plummeting along with the stock market as the Trump administration embarked on a global trade war. However, the bitcoin price has held up better than many had expected, supported by growing fears surrounding the future of the U.S. dollar and bitcoin’s reputation as "digital gold."

Analysts have noted that the renewed risk-on mood in the market is setting the stage for bitcoin to make a run at $100,000. The $95,000 level had been a key resistance zone in recent weeks, and once bitcoin cleared it with strong momentum, the price accelerated quickly. With equities pushing higher and liquidity expectations rising, bitcoin is behaving like a high-beta macro asset, closely tied to investor appetite for risk and reflation trades.

Other bitcoin and crypto investors have also expressed optimism about the latest bitcoin price rebound. Joe Burnett, director of market research at Unchained, predicted that bitcoin could reach $200,000 or $250,000 this year if the price gets going soon and breaks a new all-time high. Burnett believes that the macro conditions are great and that all the narratives are set for a potential parabolic rise in the bitcoin price.