Bitcoin (BTC) experienced significant gains on Friday, rising as much as 5.3% from Thursday’s market close. This surge is largely attributed to the incoming Trump administration’s commitment to crypto-friendly policies.
The most notable beneficiaries of this trend include stocks and funds closely tied to Bitcoin, such as Canaan (CAN), MARA Holdings (MARA), Coinbase Global (COIN), and iShares Bitcoin Trust (IBIT). These investments have seen substantial price increases, with some exceeding 20% in the past year.
President-elect Trump has promised to issue several executive orders on crypto regulations, which could lead to government-sponsored Bitcoin mining and a more robust regulatory framework. However, this development is subject to uncertainty, as lawmakers may slow down or block certain provisions.
While the short-term outlook remains uncertain, analysts point to the four-year cycle of Bitcoin halvings and the introduction of spot Bitcoin ETFs as reliable indicators for investment decisions. It’s essential to conduct thorough research on companies like Coinbase, MARA, and Canaan, which operate normal businesses with strict financial reporting requirements.
The key takeaway is that the cryptocurrency market is inherently volatile, and investors should approach it with caution. Despite the potential benefits of a Trump-led crypto agenda, there are also risks associated with this trend, as evidenced by the historical data in the table provided.
Source: https://www.fool.com/investing/2025/01/17/why-bitcoin-and-related-stocks-soared-on-friday