The crypto markets are abuzz as prices surge ahead of President-elect Donald Trump’s impending inauguration on January 20th. Bitcoin is leading the charge, rebounding above the psychologically significant $100,000 level and now eyeing a run at $110,000. Meanwhile, Ethereum options are signaling bullish sentiment as traders bet on upside in the number two cryptocurrency.
The broader crypto complex is riding the bullish wave, with the majority of top altcoins posting solid gains over the past 24 hours. However, traditional financial markets are striking a more cautious tone, as some analysts warn that the Trump inauguration euphoria could give way to a “sell the news” pullback.
Bitcoin Shines as Sentiment Shifts
Bitcoin’s rebound is capturing the attention of crypto traders, with the pioneering digital asset rallying over 2.7% in the past day to trade around $102,000 at press time. Deribit’s BTC options are indicating a bullish bias and CME futures open interest is ticking higher, though still shy of record levels.
The positive price action comes as some bitcoin miners are opting to stockpile their mined coins in anticipation of further upside. Major U.S. miners like Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) are retaining all newly minted BTC for their treasuries.
ETH Options Turn Bullish
Ethereum is also benefiting from the risk-on mood, with ETH trading just shy of $3,700, up 0.62% on the day. The action in the ETH options market is particularly notable, with the $4,000 call strike now the most popular on Deribit, sporting over $336 million in open interest.
Traders are even dabbling in some high-strike ETH call options, with the $10,000 and $15,000 strikes seeing activity for contracts expiring in late 2025. While these bets are highly speculative, they underscore the growing bullish bias among ETH derivatives traders.
Crypto Outshines Cautious Macro Mood
The buoyant crypto market action stands in contrast to the more subdued moves in equities and other traditional risk assets. With the S&P 500 near record highs, some market participants are bracing for a potential “sell the news” scenario around the Trump inauguration.
Broadly speaking, we see some cracks in the data and think that Trump’s inauguration later this month has a decent chance of being a ‘sell the news’ event after nearly three months of unbridled economic optimism across most sectors.
– Bruce J Clark, Head of Rates America, Informa Connect
For now though, the crypto complex appears to be shrugging off those macro concerns, with bulls in firm control of the price action. The next key hurdle for BTC will be a convincing break above $110,000, which could open the door to a rally toward the all-time high around $120,000.
Around the Crypto Sphere
- FTX EU sold to Backpack Exchange for $32.7M as the upstart crypto platform plots a regulated derivatives push in Europe
- Vitalik Buterin donated nearly $1M worth of “meme coins” like NEIRO, ESTEE, and MARVIN to charity
- The Pythagoras Alpha Long Biased crypto fund leveraged AI-driven strategies to gain 204% in 2024, crushing BTC’s 121% return
As the Trump era dawns in the U.S., the crypto markets seem to be signaling optimism that the incoming administration will be favorable for digital assets. However, with prices already elevated, the risk of a “buy the rumor, sell the news” pullback can’t be ruled out. Traders should stay vigilant and maintain proper risk management amidst potential volatility.
The positive price action comes as some bitcoin miners are opting to stockpile their mined coins in anticipation of further upside. Major U.S. miners like Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) are retaining all newly minted BTC for their treasuries.
ETH Options Turn Bullish
Ethereum is also benefiting from the risk-on mood, with ETH trading just shy of $3,700, up 0.62% on the day. The action in the ETH options market is particularly notable, with the $4,000 call strike now the most popular on Deribit, sporting over $336 million in open interest.
Traders are even dabbling in some high-strike ETH call options, with the $10,000 and $15,000 strikes seeing activity for contracts expiring in late 2025. While these bets are highly speculative, they underscore the growing bullish bias among ETH derivatives traders.
Crypto Outshines Cautious Macro Mood
The buoyant crypto market action stands in contrast to the more subdued moves in equities and other traditional risk assets. With the S&P 500 near record highs, some market participants are bracing for a potential “sell the news” scenario around the Trump inauguration.
Broadly speaking, we see some cracks in the data and think that Trump’s inauguration later this month has a decent chance of being a ‘sell the news’ event after nearly three months of unbridled economic optimism across most sectors.
– Bruce J Clark, Head of Rates America, Informa Connect
For now though, the crypto complex appears to be shrugging off those macro concerns, with bulls in firm control of the price action. The next key hurdle for BTC will be a convincing break above $110,000, which could open the door to a rally toward the all-time high around $120,000.
Around the Crypto Sphere
- FTX EU sold to Backpack Exchange for $32.7M as the upstart crypto platform plots a regulated derivatives push in Europe
- Vitalik Buterin donated nearly $1M worth of “meme coins” like NEIRO, ESTEE, and MARVIN to charity
- The Pythagoras Alpha Long Biased crypto fund leveraged AI-driven strategies to gain 204% in 2024, crushing BTC’s 121% return
As the Trump era dawns in the U.S., the crypto markets seem to be signaling optimism that the incoming administration will be favorable for digital assets. However, with prices already elevated, the risk of a “buy the rumor, sell the news” pullback can’t be ruled out. Traders should stay vigilant and maintain proper risk management amidst potential volatility.
