Bitcoin could resume rally as Trump signs executive order, calls US a Crypto and AI hub

Source Fxstreet
  • Bitcoin shows signs of a rally as President Trump signs an executive order initiating a working group for digital assets.
  • The order also calls for the creation of a strategic national digital asset stockpile.
  • Donald Trump said the US would become a hub for Crypto and AI at the World Economic Forum.

Bitcoin (BTC) trades near $103,000 on Thursday, following President Donald Trump's executive order to create a Presidential Working Group on digital assets. The group will also oversee the feasibility of the US creating a national digital asset stockpile.

Bitcoin sees gains as new US administration could trigger crypto rally

Bitcoin is gathering momentum to resume its rally following recent activities from the newly inaugurated President Donald Trump's administration.

Trump reportedly signed an executive order initiating a new Presidential Working Group on Digital Assets Markets. The team is tasked with establishing a framework for digital assets regulations that will serve as a guide for the crypto industry. 

It also aims to create a strategic national digital asset stockpile for the US. This could serve as a first step towards establishing a Bitcoin strategic reserve as promised by Trump during his presidential campaign. 

The Working Group will function under the oversight of Trump's AI and crypto Czar David Sacks. Other delegates will include the Securities & Exchange Commission (SEC) acting Chair Mark Uyeda, the Secretary of the Treasury, with other key federal department heads.

The executive order also prohibits any action towards creating and promoting a Central Bank Digital Currency (CBDC) and reverses the previous Biden administration's order on digital assets.

Trump wants to make America capital for Crypto and AI

Additionally, Trump addressed a group of globalists on Thursday at the World Economic Forum, where he mentioned several plans that his administration is working on to strengthen the economy.

This includes using the country's oil and gas energy reserves to strengthen its manufacturing power. Trump added that this would make the US a crypto and artificial intelligence leader.

"Not only will this reduce the cost of virtually all goods and services, it will make the United States a manufacturing superpower and the world capital of artificial intelligence and crypto," said Trump.

Likewise, Trump shared his plan to order the immediate lowering of interest rates in the US. Low interest rates have historically driven Bitcoin's price higher, as it incentivizes investors to store their funds in risk assets like cryptocurrencies.

The influx of capital from retail investors can lead to higher demand and price appreciation for Bitcoin. Low rates also heighten Bitcoin's appeal as a hedge against inflation, further stimulating investor interests.

Moreover, much of Bitcoin's price movements in 2025 have been driven by macroeconomic data. This was evident in the past two weeks when the Nonfarm Payroll (NFP) data and Federal Reserve expectations for rate cuts sent Bitcoin diving toward the $90,000 level.

Pro-crypto Senator Lummis voted as Chair of Senate subcommittee on digital assets

Additionally, Senator Cynthia Lummis was officially voted in as chair of the new Senate subcommittee for digital assets. The subcommittee will function similarly to the House Committee on Financial Services established in 2023 and will likely control crypto affairs under the new presidential administration.

Lummis, a strong advocate for crypto and the Bitcoin strategic reserve, shared the subcommittee's plans for the crypto industry.

"The Senate Banking digital asset subcommittee will pass legislation promoting responsible innovation and consumer protection, Eradicate Operation Chokepoint 2.0, and Make America the bitcoin and digital asset capital of the world," she stated on X.

The crypto community continues to anticipate news of a strategic reserve for Bitcoin, which has been one of the landmark promises of the new administration.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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