Bitcoin reached new heights, hitting an all-time high of $109,114.88 just hours before Donald Trump’s inauguration as the 47th President of the United States.
However, the rally was not sustained. It briefly dipped to just below $100,000 before recovering to above $103,000. The rally is being driven by growing hopes in the Bitcoin community that Trump will be pro-Bitcoin and will create a good environment for digital assets.
This anticipation has been building since his election in November 2024 when bitcoin broke $100,000 for the first time in early December.
Bitcoin hit $109,036 on January 20 beating the previous record of $108,000 from December. As of now, bitcoin is at around $103,800 up 2.68% in the last 24 hours and 12.52% in the last 7 days.
Trump’s inauguration has the markets buzzing and bitcoin is surging. His plans for a national bitcoin reserve and regulatory relief has given investors hope. He’s reportedly making digital assets a priority and that could be even better for Bitcoin.
Coinbase CEO Brian Armstrong recently wrote about global bitcoin reserves, calling Bitcoin “the next chapter of capitalism”.
In a January 17 blog post he said policymakers should pass “crypto-friendly” laws, make government more efficient and have bitcoin reserves to hedge against inflation.
In the meantime, US states are competing to pass creation of bitcoin reserves into laws. Wyoming has already introduced a bill to create a Strategic Bitcoin Reserve, along with Texas, Ohio and Pennsylvania.
This is a sign that Bitcoin is being integrated into state and national financial systems.
Adding to the “crypto hype,” Donald Trump and his wife Melania Trump launched their official memecoins $TRUMP and $MELANIA on the Solana blockchain.
$TRUMP launched on January 18 and went to $15 billion in market cap in hours. $MELANIA launched two days later and went up 70% in 24 hours, before both came crashing down.
But the back to back launches have raised allegations of pump and dump and market manipulation. Critics say the timing and the rapid succession of the launches looks opportunistic.
Michael A. Gayed, financial analyst called $TRUMP a pump-and-dump scheme and said it hurts Trump’s reputation. José Maria Macedo, co-founder of Delphi Labs said the launches are rushed attempts to capitalize on Trump’s success.
Despite the controversy both tokens have gained a lot of attention.
Bitcoin’s rally, although fast and huge, lacked momentum. Many speculated that the next resistance would be at $109,500, and above that at $115,000. However, bitcoin fell as fast as it went up.
If the downtrend continues, analysts see $94,979 and $90,000 as potential resistance levels.
Technicals, however, still look good. RSI is 64.55 which is slightly overbought but still has room to go up. Bitcoin is above 50 and 200 day moving averages which is bullish in the long term.
As Trump takes office, the Bitcoin community is expecting good things for Bitcoin and the entire digital asset space. The anticipation of digital-asset-friendly policies and strategic bitcoin reserves has bitcoin ready to go up.
