On the day of the U.S. Presidential Inauguration, Bitcoin (BTC) soars to unprecedented heights, with recent achievements hinting at potential values approaching $110,000.
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This week, Bitcoin and cryptocurrency markets have shown significant fluctuations, with traders attributing the volatility to President-elect Donald Trump beginning his term in office.
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There are whispers that Trump might unveil several events capable of causing market fluctuations, with some suggesting he could announce the establishment of a strategic Bitcoin reserve during his inauguration address.
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For a short while, macroeconomic data becomes less prominent as the focus shifts back to the U.S. inflation conflict.
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Another perspective on the Trump cryptocurrency story emerges as traders grapple with unexpected announcements about meme coins. (This version aims to simplify and make the sentence more readable by breaking it down into two independent clauses.)
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Currently, there’s a scarcity of Bitcoin for sale, as per the data from cryptocurrency exchanges, with the amount available being the lowest it’s been since 2018.
BTC price retakes all-time highs on Trump Inauguration Day
The behavior of Bitcoin’s price could display unexpected fluctuations and brief spikes in short-term volatility, given the inauguration of the new U.S. administration led by President-elect Donald Trump.
On Inauguration Day itself, information from CryptoMoon Markets Pro and TradingView supports the observation that this trend was already apparent, as Bitcoin reached unprecedented peaks amidst whispers that Trump might declare a strategic reserve.
Despite the prices not surpassing $110,000, a substantial resistance (or ‘sell wall’) is preventing any significant advancement beyond familiar ground and exploration of new pricing regions.
On January 20th, well-known trader Skew noted that certain entities appeared to be selling as the price increased.
In his continuing analysis on X, he expressed that the seller anticipated a quote higher than the current price and sold video segments to buyers who had placed bids at those levels.
“Implies it’s going to take a lot more juice to auction higher currently – basically a fight of who has deeper pockets here.”
Another post described a “pretty ripe environment for pretty volatile moves” on lower timeframes.
“$110K supply remains with added ask liquidity around $109K,” Skew explained.
Looking at the broader perspective, CrypNuevo, my trading colleague, pointed out potential support zones beneath the current price, which may hold if we experience another sudden reversal. These key levels are at $99,000 and $95,500.
Despite the markets being closed on Monday, it’s expected to be a tumultuous week due to the market’s reaction to President Trump’s first week in office, as he concluded on January 19.
It was observed by Resource Material Indicators that a protective measure known as “bid support” was implemented at approximately $99,000 on the Binance platform.
Material Indicators’ co-founder Keith Alan observed the potential for a “golden cross” event occurring between the 21-day and 50-day moving averages.
“The momentum from that Golden Cross should push BTC back to ATH territory,” he predicted.
Bitcoin strategic reserve hype boils over
Discussion among analysts suggests that speculation about a potential U.S. strategic reserve under the incoming Trump administration is significantly influencing the current dynamics of the cryptocurrency market.
If any plans have been made, they’re still shrouded in mystery. It is being whispered that altcoins could potentially be incorporated alongside Bitcoin within a broader diversification strategy.
Additionally, some assertions being shared on social media suggest that Trump mentioned the reservation during his inauguration address.
🔔 HEADS UP: There’s talk that a draft of the forthcoming speech might hint at a Secret Stash of Bitcoins as part of a strategic plan.
bitcoin-usd/”>BITCOIN PRICES SET TO SOAR TO NEW RECORDS 🚀
— CEO (@Investments_CEO) January 20, 2025
On January 19th, Senator Cynthia Lummis, an advocate for Bitcoin and the author of a supportive bill, held a meeting with former President Trump.
As a crypto investor, I’m finding myself optimistic about the current landscape within our digital currency community. The prediction service Polymarket is suggesting a likelihood of approximately 60% that a Bitcoin reserve could become a reality within President Trump’s initial 100 days in office.
Dan Held, a longtime Bitcoin commentator now serving as an advisor and investor, announced to his X number of followers that “The Strategic Bitcoin Reserve has not been factored into its pricing.
Trader Pentoshi, expressing a common sentiment within the trading community, suggested it was evident that Inauguration Day would likely result in favorable executive orders issued by President Trump.
“How many other nations will follow?” he queried about the reserve.
“That’s the game everyone must play.”
Fed saves inflation gloom for next week
This year, the week of the U.S. Presidential inauguration is expected to deviate significantly from past years when it comes to traditional market behavior.
As a crypto investor, I find myself at a pivotal moment where inflation and long-term Federal Reserve policies are concerned. This upcoming event, however temporary it may be, is likely to divert our collective gaze from the current macroeconomic stories we’ve been following.
In simple terms, The Kobeissi Letter pointed out that President-Elect Donald Trump’s supportive stance towards cryptocurrencies could serve as a significant factor fueling the growth of risky investments.
2025 is anticipated as the year when deregulation may occur, and the U.S. government might embrace cryptocurrencies, according to a section of the ongoing market analysis on X.
“This is driving investor sentiment and risk appetite across all markets.”
As a market analyst, I ended the week with US stocks advancing, gearing up for the Martin Luther King Jr. holiday. The upcoming week is relatively quiet on major economic data releases. However, one crucial piece of information to watch out for is the weekly jobless claims data, which is set to be released on January 23rd.
Meanwhile, Kobeissi emphasized various noteworthy occurrences that could impact market movements. Among these are the possibility of the U.S. reaching its debt limit on January 21st.
According to recent analysis, the United States government has accumulated a total of 13 trillion dollars in debt since the year 2020. This observation was made in a weekend report.
“The debt crisis didn’t end the last time the debt ceiling was raised. It simply just keeps getting brushed under the rug. This is unsustainable.”
According to a report from CryptoMoon, the latest inflation figures have caused concern among investors in riskier assets, as they await the Federal Reserve’s upcoming decision regarding interest rate adjustments scheduled for January 29th.
According to the most recent information from CME Group’s FedWatch Tool, it appears extremely unlikely that a new interest rate reduction will occur, as the chances stand at only a minuscule 0.5%.
Memecoin madness captures crypto markets
Before the Trump administration even assumes office, an unexpected trend is causing turbulence in the cryptocurrency market: “Presidential” meme-based coins.
As the debut of the OFFICIAL TRUMP ($TRUMP) token approached just before Trump’s inauguration, it ignited a trading craze. This frenzy, however, turned sour for those who joined the market late, as Melania Trump started endorsing her own digital coin.
Bitcoin maintained its relative stability until the emergence of the Official Melania Meme (MELANIA), causing a brief dip that pushed the BTC/USD exchange rate below $100,000.
On January 20th, Bitcoin reached a new peak, but soon after it joined the turbulent dance floor of the cryptocurrency market. Traders are alerting others about potential unexpected swings in the future.
Charles Edwards, the founder of Capriole Investments, a firm specializing in quantitative Bitcoin and digital assets, cautioned on January 19th, expressing concern that if Trumpcoin, which he hopes to thrive, were to falter, it could have a significant impact on our entire industry.
As a researcher, I’ve observed Kobeissi pointing out the registration of multiple new domain names, suggesting potential launches of additional memecoins tied to Trump’s brand.
On January 20th, when this was penned down, TRUMP’s trading price hovered slightly under $60 per token. It had bounced back from earlier lows, managing to keep a spot among the top twenty cryptocurrencies in terms of market capitalization.
In simpler terms, popular analyst Miles Deutscher characterized the surge of Trump’s meme coin during his six-year career as absolutely incredible or remarkably unusual.
He forecasted that gains made during the $TRUMP surge might flow into the wider cryptocurrency market of altcoins, as discussed in a specific post dedicated to this subject.
Bitcoin avoids major exchange sell-off
Bitcoin exchange balances continue to support a HODL-oriented mindset among Bitcoin investors.
According to recent findings from the onchain analytics platform, CryptoQuant, the current supply of Bitcoin on significant exchanges is at its smallest in the past seven years.
As of Jan. 18, the exchanges’ total balance was 2.34 million BTC — a low not seen since mid-2018.
“Supply shock,” Deutscher responded on X.
Although some people don’t think that exchange balances directly represent the total market activity, CryptoQuant observes a discernible pattern aligning with the ongoing bull run.
Looking at the trend of exchange flows over the past 100 days, user CryptoOnChain pointed out that trading volumes on significant platforms have been decreasing progressively.
In a Quicktake blog post published on January 19th, it was noted that the record-low Bitcoin Exchange Netflow happened in February 2023, which marked the period when Bitcoin’s price hit its lowest point during this particular cycle.
“The value of this metric at that time was -3.657K. Now, nearly two years later, Bitcoin is once again approaching this value. Currently, the value of this metric is around -3.38K. This could be an indication of a potential re-accumulation of Bitcoin.”
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2025-01-20 13:00