On Friday. bitcoin topped $100,000, as U.S. inflation data re-energized hopes that the U.S. Federal Reserve might slash interest rates.

"I can certainly see rate cuts happening sooner than maybe the markets are pricing in,” Fed Governor Christopher Waller told CNBC .

The world’s second-largest cryptocurrency, ethereum, and XRP, also posted gains this week. Ethereum is currently trading at more than $3,425 at the time of writing. XRP, too, saw a breakout price exceeding $3, allowing it to reach a seven -year high, transforming the token into the world's third -highest valued cryptocurrency.

Donald Trump’s impending inauguration on January 20 is expected to boost bitcoin and altcoin prices further, as his pro-crypto agenda pledges a range of policies broadly supportive of the digital asset sector, including the creation of America’s first bitcoin stockpile. Despite this, there are still concerns about how his stringent immigration policies or imposition of new tariffs – likely to drive up inflation – will impact crypto prices.

Trump supporters point to the fact that bitcoin markets rallied in the wake of Trump’s re-election victory, propelling the world’s top cryptocurrency to reach new heights of $108,316 on November 5.

“Crypto projects have been waiting for regulatory clarity for a very long time; finally, crypto market structure legislation is likely to move relatively fast this year – or, fast for Congress,” said Marta Belcher, President of Filecoin Foundation.

“Many policymakers on both sides of the aisle support crypto," Belcher explained. "I don't think crypto is a partisan issue, just like 'the Internet' isn't a partisan issue. I don't think, in 2025, either party can be "anti" an entire technology if they're thinking seriously about America's future. There is a misconception that the crypto lobby is new. At this point, many of us have been working on crypto policy issues for a decade. All of that groundwork laid the foundation for where crypto policy is today.”