The crypto world is abuzz with anticipation as bitcoin teeters on the brink of a new all-time high, poised to shatter its previous $108,000 record. And the catalyst that could send it soaring? None other than the impending inauguration of crypto-friendly President-elect Donald Trump.
Traders are on the edge of their seats, bracing for a wild ride as the possibility of game-changing pro-crypto announcements on Day 1 of the Trump administration sends shockwaves through the market. The excitement is palpable as the countdown to January 20th ticks ever closer.
Bitcoin’s Bullish Breakout
Wednesday’s tamer-than-expected core inflation reading was the green light bitcoin needed to rev its engines. With inflation fears temporarily assuaged, the door has been flung wide open for the king of crypto to reclaim its throne.
“The removal of inflation fears clears the way for bitcoin to break through the strong $100,000 resistance level before Trump’s inauguration,” declared Matt Mena, crypto research strategist at 21Shares. “Such a milestone would not only be psychologically significant but also technical, setting up bitcoin to surpass its $108,000 all-time high and establish new record levels as market optimism builds.“
Asymmetric Price Discovery
But it’s not just technical indicators fueling the bullish sentiment. The prospect of Trump following through on his campaign promise to establish a Strategic Bitcoin Reserve has investors salivating.
If Trump indicates on day one that he will be creating the Strategic Bitcoin Reserve, even if he doesn’t sign it on day one, expect price discovery to be asymmetric.
– Nathan Cox, Chief Investment Officer at Two Prime
According to Cox, once bitcoin eclipses its previous high of $108,000, the sky’s the limit on how quickly it could appreciate, fueled by the unprecedented global demand a U.S. bitcoin reserve would generate.
Volatile Week Ahead
Of course, with great potential comes great volatility. Market maker Wincent is girding for turbulence, cautioning that the much-anticipated regulatory announcements may not be fully priced in.
- Expect +/-10% swings in major coins like BTC, ETH, SOL & XRP
- Outcomes of Trump’s crypto-related announcements to drive pricing
- Banking rules & Strategic Bitcoin Reserve key areas to watch
As the hours tick down to Inauguration Day, the crypto community holds its breath, poised for a potential watershed moment. Will Trump’s first day in office launch bitcoin into uncharted territory? Or will the market’s high hopes be dashed? One thing’s for certain – it’s going to be a wild ride.
