As Bitcoin flirts with the monumental $109,000 mark, the cryptocurrency world is abuzz with speculation, optimism, and a fair dose of volatility. With pro-crypto U.S. President-elect Donald Trump set to be inaugurated this week, the market has been energized by both policy expectations and the launch of TRUMP and MELANIA memecoins, triggering a whirlwind of activity.
Bitcoin Surges Ahead
Bitcoin’s price reached $109,111 early Monday morning Eastern Time before settling slightly at $108,797, marking a 3.8% rise in just 24 hours. Ether also saw gains, climbing 4.7% to $3,431, while Solana faced a 5% dip, trading at $260. Meanwhile, Dogecoin slipped by 2.4% to $0.38.
The anticipation surrounding Trump’s inauguration appears to be a key driver behind Bitcoin’s bullish momentum. Ben El-Baz, managing director of crypto exchange HashKey Global, highlighted the optimism in the market: “Bitcoin has surged above $108,000 as the inauguration looms, with expectations of crypto-friendly policies adding fuel to the rally. The recent launch of TRUMP and MELANIA memecoins has brought a wave of retail investors, further boosting momentum.”
A Crypto-Friendly White House?
Trump’s presidency could herald a new era for cryptocurrencies in the United States. Rumors circulating in the market suggest that a leaked draft of Trump’s inauguration speech hints at establishing a Bitcoin strategic reserve, although this remains unconfirmed. Min Jung, a research analyst at Presto Research, noted, “The mere possibility of such a move has sparked significant excitement. Even unsubstantiated, this speculation is pushing the market higher.”
Jung’s insights also point to a larger narrative of policy optimism. With the U.S. economy showing resilience, many see Trump’s administration as an ally to the burgeoning crypto industry. His previous statements in favor of decentralization and blockchain technology align with expectations for regulatory clarity and potential institutional adoption of cryptocurrencies.
📢 Bitcoin Hits New Record 📢
📈 Bitcoin surges past $109K ahead of Trump’s inauguration!
🚀 Investors eye crypto-friendly policies as President-elect Trump promises to make the U.S. the “crypto capital.” Meanwhile, Trump’s memecoin, $TRUMP, soars 7000% before facing… pic.twitter.com/53tMXlyep8— IUX Official (@iux_official) January 20, 2025
Memecoins Ignite Volatility
The recent launch of the TRUMP and MELANIA memecoins has not only captured public attention but also reshaped liquidity dynamics within the crypto ecosystem. These tokens have attracted retail investors in droves, causing significant capital flows and heightened market volatility.
In just 24 hours, over $1.2 billion in liquidations were recorded across centralized exchanges, making it the largest liquidation event in January. Augustine Fan, head of insights at SOFA, cautioned about the implications: “Memecoins are a zero-sum game. While TRUMP and MELANIA have drawn massive interest, they’ve drained liquidity from smaller altcoins, creating capital risks for latecomers.”
Small-cap tokens, including AI-related coins and lesser-known memecoins with market caps under $100 million, bore the brunt of these shifts. “Funds have flowed predominantly toward TRUMP and MELANIA, leading to notable declines in smaller tokens,” said Jung.
Despite this, the broader market’s sentiment remains cautiously optimistic. The memecoin craze is seen by some as a temporary distraction from institutional developments, which are considered crucial for the long-term growth of the crypto industry.
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