Bitcoin has surged once again, riding a wave of optimism driven by whispers of major policy changes under Donald Trump’s potential return to the White House. Speculation about sweeping crypto reforms is fueling excitement among investors, with some predicting Bitcoin could soar to unprecedented heights.

Bitcoin Surges on Trump’s Crypto Vision

Following a turbulent period, Bitcoin is back on an upward trajectory, nearing the $100,000 mark. The rebound was sparked by Donald Trump’s anticipated executive actions, set to prioritise crypto-friendly policies. Insiders suggest these reforms could reverse years of regulatory hurdles imposed during the Biden administration.

Trump, who has dubbed himself the “crypto president,” reportedly plans to introduce several key measures on January 20, his first day in office. This includes addressing the contentious policy of classifying cryptocurrencies as liabilities on banks’ balance sheets, a move expected to unlock significant institutional investment.

The End of ‘Operation ChokePoint 2.0’?

One of Trump’s expected reforms targets “Operation ChokePoint 2.0,” an alleged effort to de-bank crypto firms under the current administration. Critics claim the policy has stifled innovation and restricted access to financial services for crypto companies.

Venture capitalist Marc Andreessen has highlighted the issue, propelling it into the mainstream through his discussion on Joe Rogan’s podcast. Andreessen, a close associate of Trump’s rumored crypto czar David Sacks, is reportedly collaborating with the administration to dismantle these restrictions.

SAB121 Repeal: The $5 Million Bitcoin Catalyst

Another focal point is the potential repeal of the SEC’s controversial 2022 accounting rule, SAB121. This policy requires companies holding crypto assets to list them as liabilities, a stance that has deterred corporate adoption.

Michael Saylor, a prominent Bitcoin advocate and co-founder of MicroStrategy, has called the repeal a game-changer. “If SAB121 is reversed, Bitcoin could reach $5 million per coin,” Saylor claimed, citing increased corporate and institutional buying as the driving force.

Wall Street and Fair Value Accounting Fuel Optimism

Wall Street’s growing embrace of crypto has further bolstered Bitcoin’s prospects. In 2023, BlackRock led the charge with its spot Bitcoin ETFs, triggering a rush of investments.

Meanwhile, the adoption of fair value accounting by the Financial Accounting Standards Board (FASB) marked a significant milestone, enabling companies to report Bitcoin holdings more transparently. These developments, coupled with the potential SAB121 repeal, have set the stage for a dramatic market shift.

A New Era for Crypto?

As January 20 approaches, the crypto world watches with bated breath. Trump’s policies could mark a turning point, dismantling regulatory barriers and unlocking Bitcoin’s full potential. While predictions of a $100 trillion market cap may seem ambitious, the momentum is undeniable, with institutions and investors ready to capitalise on the opportunities ahead.

Bitcoin’s rally reflects growing confidence in its role as a financial asset, and Trump’s possible reforms may just be the catalyst the market has been waiting for.