Bitcoin (BTC) Poised for Record Price Over $108K as Trump Inauguration Approaches, Major Coins Set to Swing 10%: Traders

Cryptocurrency traders are feeling optimistic again, anticipating Bitcoin (BTC) to surpass record highs amid choppy trading as crypto-pro-President-elect Donald Trump approaches the inauguration on January 20.

The price of Bitcoin, the largest cryptocurrency, has risen 11% from Monday’s lows of less than $90,000. It has jumped nearly 3% in the past 24 hours, topping $100,000 at one point. CoinDesk data displays.

The move to six figures stimulated risk taking in the broader market Core CPI is weaker than expected The report was tempered Fed hawkish concerns That pushed prices down. Instead, markets are focused on Trump’s swearing-in and potential cryptocurrency announcement on his first day in office.

“Removing inflation concerns paves the way for Bitcoin to break through the strong $100,000 resistance level ahead of Trump’s inauguration,” Matt Mina, crypto research strategist at 21Shares, said in an email. “Such a milestone would not only be psychologically significant, but also technically significant, leading Bitcoin to surpass its all-time high of $108,000 and achieve new highs as market optimism grows.” 21Shares is one of the world’s largest cryptocurrency issuers of exchange-traded products (ETPs).

“Trump’s well-documented support for pro-growth policies and his track record of favoring rising asset prices reinforces the bullish outlook for Bitcoin and risk assets more broadly,” Mina wrote.

The bullish outlook is consistent with a rise in traditional assets, especially the Nasdaq 100, which rose more than 2% on Wednesday. BTC recently boosted its positive correlation with the tech-heavy index to a two-year high.

Meanwhile, the rise in the dollar index, which measures the value of the US currency against major fiat currencies, has stalled, providing a lifeline to risky assets, and the S&P 500 index approached the key level of 6,000.

According to MENA, a break above 6,000 “could pave the way for the next phase of the global asset market bull run.”

A skeptic of digital assets, Trump turned to the cryptocurrency community in the months leading up to the November election, vowing to create a strategic national stockpile of bitcoin. His win helped push BTC over $108,000 from $70,000 to over $108,000.

“If Trump signals on day one that he will create a Bitcoin Strategic Reserve, even if he doesn’t sign it on day one, expect price discovery to be asymmetric,” said Nathan Cox, chief investment officer at Two Prime. Email. “Once the previous highs of $108,000 are reached, there is no limit to how quickly it can expand given the unprecedented demand that a Bitcoin reserve strategy can create globally.”

Two Prime is an SEC-regulated, registered investment advisor specializing in digital asset derivatives.

Fluctuations are possible

Paul Howard, a senior director at cryptocurrency market maker Wincent, said expected announcements related to regulation of the digital asset industry, banking rules and the creation of the Bitcoin Strategic Reserve have not yet been fully priced in.

“We are well positioned for a volatile week ahead with the change of administration in the US and expect to see some +/- 10% moves across major currencies such as BTC, SOL, ETH and XRP. Pricing will reflect the results of announcements made by upcoming companies. Mr. President, so Opportunities, but probably not everything, are included in the current price.”