Major cryptocurrencies rallied on Friday, with bitcoin back on track toward its record high days ahead of the second inauguration of crypto-friendly President-elect Donald Trump.

The largest cryptocurrency by market capitalization BTCUSD went up 4.7% to around $104,982 on Friday afternoon, only 3.1% away from its record high at $108,309. Bitcoin is up 10.8% so far this week, on track for its best weekly performance since the week ending Nov. 15, 2024, when it rose 19.2%, according to Dow Jones Market Data.

Meanwhile, XRP XRPUSD, the third-largest crypto by market cap, hit a record high at $3.40 on Thursday, before pulling back to around $3.20 on Friday.

Read:

Major cryptocurrencies have rallied as industry participants have high hopes for crypto-friendly policies after Trump returns to the Oval Office. Trump has vowed to build a strategic bitcoin reserve in the U.S. and said he would nominate former SEC Commissioner Paul Atkins, who is considered pro-crypto, to serve as chair of the securities regulator.

The macroeconomic data released this week also provided tailwinds for risk assets including crypto, Sidney Powell, chief executive and co-founder at decentralized lending platform Maple Finance, said in an interview.

Bitcoin and stocks both rose after consumer-price index data released on Wednesday showed below-forecast core inflation . The S&P 500 SPX is up 3.1% so far this week.

“I think the inflation data alleviated some concerns that the Fed may not cut interest rates this year,” Powell said.

Fed-funds futures traders have priced in a roughly 50% probability the Federal Reserve will deliver at least the equivalent of two 25-basis-point rate cuts by year-end, up from around 30% a week ago.

As bitcoin and stocks have been mostly trading in tandem for the past few days, “if risk appetite in equities persists, an advance [for bitcoin] into the $108,00 to $110,000 range could materialize within a few days,” Alex Kuptsikevich, chief market analyst at FXPro, wrote in a Friday note.