Bitcoin price today, Bitcoin (BTC) has surged past the $10,900 mark, drawing significant attention from both investors and analysts in the cryptocurrency market ahead of the inauguration of Donald Trump.
Recent fluctuations in Bitcoin's price have captured the attention of global investors. On Monday, Bitcoin reached an all-time high of $109,350.72 just before President Trump's inauguration, but subsequently fell to $103,558.38, marking a decline of over 2%. Many analysts interpret this phenomenon as a classic example of "buy the rumor, sell the news," revealing the market's heightened interest in the potential cryptocurrency policies of Trump’s new administration.
Bitcoin's price increase is closely tied to the anticipation surrounding Trump's inauguration. Over the past week, the market has heated up due to expectations that the Trump administration may support the development of cryptocurrencies. Investors believe that Trump’s ascension signifies the beginning of a "new golden era" for cryptocurrency in the U.S. There are particular rumors that Trump might sign an executive order to create a national-level cryptocurrency advisory committee and even establish a national Bitcoin reserve, further promoting the legitimacy and prevalence of cryptocurrencies.
Over the weekend, Trump launched a meme coin called "Official Trump," which quickly surpassed a market cap of $10 billion. First Lady Melania Trump also released her own "Melania" meme coin, attracting over $7.2 billion in trading volume within 24 hours. Although meme coins are generally considered among the riskiest assets in the crypto market, the Trump family’s initiative has bolstered market confidence that the new administration will support the cryptocurrency sector.
Experts suggest that Trump's introduction of meme coins aims to send a positive signal to the market: the new administration will not only embrace mainstream crypto assets but also support speculative assets like meme coins, indicating an open stance towards innovative markets. This is seen as a potential factor in solidifying the U.S. position as a global leader in cryptocurrency.
Several market experts express optimistic views regarding Bitcoin's future price movements:
Gracy Chen (CEO of Bitget) highlights that Bitcoin's recent rise is primarily based on market expectations that the U.S. will recognize cryptocurrencies as a national interest. However, she believes that the Trump family’s introduction of meme coins has diverted some funds, limiting Bitcoin's price increase.
Joel Kruger (Market Strategist at LMAX) emphasizes that the launch of meme coins serves as a positive indicator of the new government’s support for the crypto market. He predicts that Bitcoin's price could further break through $130,000, driven by favorable policies.
Noelle Acheson (Author of "Crypto is Macro Now") states that Trump's meme coin initiative demonstrates support for innovative markets, which could foster long-term development in the U.S. crypto sector.
Despite Bitcoin reaching a new high on Monday morning, the overall crypto market experienced a pullback in the afternoon. The CoinDesk 20 index indicated a 3.6% decline across the market. Solana, which rose 14% over the weekend due to meme coin projects choosing its blockchain platform, subsequently fell by 9%.
While meme coins are considered highly speculative, the market generally views Trump's actions as reinforcing investor expectations for favorable future policies, potentially leading to long-term growth in the crypto market.
The launch of meme coins represents the first significant initiative of Trump's presidency, showcasing the new administration's positive stance towards cryptocurrencies. Not only did Bitcoin reach a new high against this backdrop, but market expectations for future policy directions are also optimistic. Although the market has adjusted in the short term, experts widely believe that as the new administration gradually implements supportive cryptocurrency policies, the U.S. could play a leading role in the global crypto market. Investors should continue to monitor policy changes and their impacts on Bitcoin and the broader cryptocurrency market to prepare for future investment opportunities.
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