The cryptocurrency market is abuzz as traders eagerly await the first crypto-specific actions from the newly inaugurated Donald Trump administration. While bitcoin briefly touched a new record high above $110,000 before pulling back, it’s the emerging artificial intelligence (AI) token sector that’s truly stealing the spotlight.
AI Agents Ignite Crypto Market
Tokens representing autonomous AI agents, a budding crypto niche, exploded in value on Tuesday. Heavy hitters like AI16Z and ARC posted sizzling gains exceeding 30%, with GRIFFAIN and ZEREBRO not far behind. The rally comes on the heels of reports that President Trump is preparing to unveil a massive $500 billion private sector investment initiative focused on AI infrastructure.
Tech titans like OpenAI, Oracle, and Softbank are rumored to be among the key players in the blockbuster deal. Trump further fanned the flames on Monday by rescinding former President Biden’s 2023 executive order aimed at regulating AI’s impact on consumers, a move widely cheered by the industry.
Conviction got tested on ai/crypto, but after Altman gave the blessing, Trump just did the same with the AI infra build-out headline. As long as BTC doesn’t fall back below 100 [thousand dollars], think this sector is where the hot ball of money goes.
Will Clemente, Reflexivity Research
Bitcoin Bides Time as Market Awaits Catalysts
Bitcoin, while taking a backseat to the AI token mania, remains on solid footing. The bellwether cryptocurrency is holding above the psychologically critical $100,000 level, bolstered by MicroStrategy adding another 11,000 BTC to its already substantial treasury. With the Michael Saylor-led company now holding nearly $50 billion worth of bitcoin, institutional conviction in the asset appears rock solid.
However, traders are exercising some caution after the frenetic weekend action. Expectations are sky-high for President Trump to deliver major crypto-friendly policies, but the specifics remain hazy.
In light of a strong BTC rally into an absurdly frothy weekend of memecoin madness and huge expectations with regard to Trump’s crypto policies, we favor a soft derisking after a very strong two-month period.
K33 Research
The analysts suggest potential early executive orders could include repealing the controversial SAB 121 and pardoning Silk Road founder Ross Ulbricht, moves that would undoubtedly energize the crypto faithful.
Ethereum Struggles as Rivals Gain Ground
Amid the bitcoin and AI token excitement, Ethereum is notably lagging. The pioneering smart contract platform’s native token ether (ETH) continues to languish near four-year lows against BTC. Rising discontent with Ethereum Foundation leadership and competition from nimbler rivals is taking a toll on market share and mindshare.
While the crypto market anxiously awaits President Trump’s next move, the tectonic plates of the industry are clearly shifting. Bitcoin looks poised to cement its status as an institutional mainstay, AI-powered autonomous agents are capturing imaginations and capital, and Ethereum faces a defining fight to retain its smart contract crown.
The outlook remains exceptionally bright, with Monday setbacks well supported into the dip
Joel Kruger, LMAX Group
One thing is certain: the crypto rollercoaster is showing no signs of slowing down in 2025. Buckle up and HODL tight!
