Why did Bitcoin rise? BTC Price Tests New ATH Ahead of Donald Trump’s Inauguration – TradingView News

The price of Bitcoin (BTC) rose to a new all-time high (ATH) of $109,350 early Monday, January 20, 2025, as cryptocurrency markets soared hours before Donald Trump’s scheduled inauguration as the 47th President of the United States.

In the background, there has been a sharp rally in the new TRUMP cryptocurrency token, which rose over the past weekend, along with the broader digital asset market. Let’s explore why the price of Bitcoin is rising.

Why did the price of Bitcoin rise today? BTC Jumps 6% Waiting for Donald Trump

The world’s largest cryptocurrency jumped more than 6% in early Asian trading on Monday, surpassing the previous record of $108,000 set in December 2024. The digital asset maintained strong momentum, trading at $107,518 at press time, reaching earlier to a new ATH of $109,350 on Binance.

Bitcoin price reaches a new ATH. Source: Tradingview.com

The recent rise comes amid growing anticipation of cryptocurrency-friendly policies under the incoming Trump administration. The president-elect has repeatedly signaled his support for digital assets during his campaign, including proposals to create a strategic national reserve for Bitcoin. Tom Trowbridge, co-founder and CEO of Fluence

“With the turning of the pages of the new administration, we are seeing a stark shift from outright hostility to full support,” Tom Trowbridge, co-founder and CEO of Fluence, commented to Finance Magnates. “The appointment of David Sachs as ‘Crypto Czar’ clearly signals a pro-crypto stance. Cryptocurrency reserves have the potential to trigger a race among other countries to accumulate Bitcoin and other assets, and crypto-friendly policies in the US will likely push pro-crypto legislation.” Cryptocurrencies around the world.

As a result of these gains, the broader cryptocurrency market is also on the rise. Ethereum price rose 3.5% in 24 hours, trading at nearly $3,400, while XRP rose 2% to $3.20. Leading the gains is Chainlink, which rose 15%, climbing to $26.50.

Technical analysis of Bitcoin, BTC is in price discovery mode

Bitcoin tested a new record price, but the previous ATH price from mid-December appears to be significant resistance. This is evident as the price, after reaching historical highs, fell below the psychological barrier of $108,000.

However, bulls can still rely on several key support levels on the Bitcoin chart. Here are the most important supports:

• $104,000 – highest levels since early December
• $102,400 – the highest domestic levels since the beginning of 2025
• $99,500 – a level marked by local highs in mid-November, near the psychological threshold of $100,000
• $92,300 – Key support reinforced by the 38.2% Fibonacci retracement and the lower limit of the consolidation zone that lasts for more than two months

Technical analysis of Bitcoin price. Source: Tradingview.com

In my view, only a drop below this final support level (and the $90,000 mark) could indicate a deeper correction for Bitcoin price. Any moves above these levels look to me like a temporary breather and an opportunity to buy at slightly lower prices.

Trump symbol shakes the cryptocurrency market

Just before the presidential inauguration, Trump’s “Official Trump” token also made waves, reaching levels above $70 on Sunday. Trump announced the launch of the coin through his official Truth Social and X accounts, confirming to skeptics that the coin was indeed linked to him. Accompanied by the statement “Winning,” the ad described the symbol as a celebration of his ideals and leadership.

For a brief period, Trump was among the ten largest cryptocurrencies by market capitalization. However, after the recent correction and price drop to $58, it now ranks 18th, with a market capitalization of just under $11.7 billion and an exceptionally high trading volume of $52 billion.

The price of TRUMP token has risen to over $70. Source: CoinMarketCap.com

This patch is due in part to the emergence of a competing token created by the future president’s wife, Melania Trump, with the token MELANIA.

“Along with the new regulatory environment for cryptocurrencies, cost-conscious and technology-friendly governance initiatives should also help drive the adoption of crypto projects, especially in the decentralized cloud and other DePIN sectors, which have the potential to save the government significant money.” Trowbridge added.

Bitcoin Price Prediction 2025: How Will Trump Affect the Market?

Trump, who is scheduled to be sworn in at 4pm CET, acknowledged Bitcoin’s performance during a speech on Sunday, linking it to broader market optimism. His administration’s pro-crypto stance has contributed to ambitious year-end price targets ranging from $185,000 to $250,000.

It seems that this is not the most optimistic forecast for Bitcoin. Late last year, I tried to answer the question: “Will Bitcoin reach $1 million?” Jeff Park, head of alpha strategies at Bitwise Asset Management, noted that this could happen if the US government adopts Bitcoin as part of its fallback strategy. However, he currently estimates the probability of this scenario occurring at only 10%.

Arthur Hayes, founder of cryptocurrency exchange BitMEX, also spoke about the possibility of Bitcoin reaching $1 million. During a recent interview on The Tom Baillieu Show, Hayes shared his thoughts on the state of the cryptocurrency market.

He suggested that Bitcoin will gradually move towards seven-figure valuations, potentially achieving this milestone within the next five years.

Bitcoin price, frequently asked questions

Why is Bitcoin rising now?

Bitcoin price rose to a new all-time high of $109,350 on market optimism surrounding the inauguration of Donald Trump as the 47th President of the United States. The anticipation of pro-crypto policies under his administration, such as a potential Strategic National Reserve for Bitcoin, has led to great excitement in the market.

Why is Bitcoin expected to rise?

Bitcoin is expected to rise further due to several major factors. Institutional adoption continues to grow, with major financial institutions such as Standard Chartered and analysts such as Tim Draper highlighting the growing interest. Additionally, the 2024 halving event reduced the supply of Bitcoin on exchanges, creating supply constraints that support higher prices.

How much is $100 Bitcoin worth now?

As of January 20, 2025, $100 worth of Bitcoin will be worth about 0.000913 BTC, given the current price of $109,350 per BTC.

What is the expected price of Bitcoin in 2025?

The expected price of Bitcoin in 2025 varies based on expert forecasts, and ranges from $175,000 to $250,000. Analysts like Tim Draper and Tom Lee expect Bitcoin to reach $250,000, citing factors such as merchant adoption, the impact of the halving event in 2024, and a lack of supply on exchanges.

Standard Chartered expects a price of $200,000, driven by institutional flows and regulatory clarity through spot ETFs. Meanwhile, Arthur Hayes expects a more conservative target of $175,000, highlighting traditional financing capital flows as a key factor.