Bitcoin holds $100K ahead of Trump presidency
Markets speculate on regulatory shifts, with smaller coins seeing strong gains amid growing enthusiasm
The cryptocurrency market is buzzing as investors look ahead to Donald Trump’s inauguration on Monday, with Bitcoin crossing the $100,000 mark for the fourth time. Smaller cryptocurrencies, or altcoins, have also surged, signaling a wave of renewed optimism among retail traders.
XRP and Litecoin led the rally, climbing 11% and 20%, respectively. Bitcoin, though rising only 1% on Thursday, has enjoyed a steady climb, buoyed by anticipation of Trump’s pro-crypto policies.
“Retail investors are diving in, expecting a crypto-friendly administration to create favorable market conditions,” said Alexander Blume, CEO of Two Prime Digital Assets. "This momentum has propelled altcoins as speculators chase high-risk, high-reward opportunities."
Trump’s campaign promises to establish a national cryptocurrency advisory council and replace SEC chair Gary Gensler have set high expectations. Gracy Chen, CEO of crypto exchange Bitget, predicts Trump’s first 50 days in office will be crucial for Bitcoin’s trajectory in 2025.
Beyond Bitcoin, speculation is driving smaller-cap tokens like XRP and Solana. Rumors that the incoming administration may consider including these tokens in a national crypto reserve, though unlikely, have fueled speculative buying.
The price of Bitcoin has hovered near the six-figure mark since December, with $90,000 providing strong support. Futures open interest—an indicator of leveraged trading—has declined sharply, pointing to a market increasingly driven by spot trading rather than speculative leverage.
While Bitcoin briefly dipped below $90,000 earlier this month, it has since rebounded, demonstrating resilience. According to analysts, Trump's inauguration could be the catalyst needed for Bitcoin to finally break out of its consolidation phase.
Investors are also eyeing potential volatility, balancing concerns over inflation with optimism about Trump’s plans to establish a national Bitcoin stockpile and encourage “made-in-USA” mining operations.
As the inauguration looms, market sentiment remains one of cautious optimism, with traders watching closely to see if Trump’s crypto vision will meet the sky-high expectations.
