Bitcoin Hits New High Amid Pre-Inauguration Market Shifts

The U.S. dollar weakened and Bitcoin surged to an all-time high as investors anticipated policy shifts before Donald Trump's presidential inauguration. Market focus was on potential executive orders regarding digital assets, tariff threats, and fiscal stimulus, alongside Japan's impending interest rate decision amid weak U.S. inflation data.

As Donald Trump's inauguration looms, the U.S. dollar faltered while Bitcoin soared to unprecedented levels, reflecting investor anticipation of policy announcements that may impact markets. Trump's pledge to be a 'crypto president' has fueled expectations of executive orders favoring digital currencies.

Despite thin trading on Martin Luther King Jr. Day, Bitcoin achieved a record high, with analysts warning of potential disruptions if promised policy measures are delayed. Attention is also on Japan, where the Bank of Japan may raise interest rates in response to market trends and economic signals.

Ambitious U.S. policy shifts, including trade tariffs under the International Emergency Economic Powers Act, loom large. As the dollar index reacts to President-elect Trump's strong fiscal agenda, Goldman Sachs hints at near-term risks, while market players keenly await the BOJ's policy meeting outcomes.

(With inputs from agencies.)