The fundamental backdrop for Bitcoin and key altcoins remains favorable. Political support, institutional investor activity, and market participant optimism are creating conditions for further price growth.

As the clock is ticking down to Donald Trump's inauguration, crypto bulls are getting more confident. It is well known that Trump promised during his presidential campaign to revise regulators' stance on cryptocurrencies. One of the significant steps could include converting part of the Treasury's reserves into Bitcoin. He also vowed to make the US a "paradise for cryptocurrencies," a "global crypto capital," and to elevate Bitcoin into a "superpower." Moreover, Trump planned to establish a Presidential Advisory Council on Cryptocurrencies.

Meanwhile, media reports suggest that Trump is leaning towards granting state reserve asset status not to BTC, the world's first cryptocurrency, but to one of the tokens created in the U.S. These could include USDC, SOL, and XRP.

Market participants are favoring XRP (Ripple), which has led in growth rates over the past few months.

This preference is partly tied to the Securities and Exchange Commission (SEC). If the SEC is indeed directed to revisit its cases involving cryptocurrencies, it could significantly impact the market, according to media reports. The suspension of cases without fraud charges could ease pressure on certain cryptocurrency projects and companies. It could also foster a more favorable regulatory environment for blockchain and cryptocurrency innovation. However, it is essential to monitor official announcements and actions by the SEC to understand how this will influence the industry overall.

All in all, the fundamental outlook for Bitcoin and major altcoins remains bullish. Political backing, institutional investor engagement, and market optimism continue to pave the way for further price growth. The $100,000 milestone for BTC has already been surpassed. The path is now open to higher levels, and for investors, this may be an opportune moment to consider cryptocurrencies as a long-term asset.

Challenges to aggressive growth

A potential obstacle to more aggressive growth could come from the Federal Reserve if it pauses its rate-cutting cycle or even shifts to tightening monetary policy.

Earlier, Federal Reserve Chair Jerome Powell stated that while the final decision will depend on macroeconomic data (primarily inflation and the labor market), the rate-setting committee is reluctant to rush into further rate cuts. This hesitancy stems from the continued economic growth and robust labor market. Powell noted that inflation remains high, which, alongside a growing economy and labor market stability, negates the urgency for further monetary easing.

Crypto market outlook

Overall, the bullish trend in the digital currency market persists, with long positions being preferable.

For popular crypto assets:

BTC/USD: a breakout above $102,700 could signal new buying opportunities.

ETH/USD: the level to watch is $3,472.

LTC/USD: the trigger point is $142.

XRP/USD: a breakout above $3.3500 may invite further buying activity.