Bitcoin reached a new all-time high of $110,000, driven by positive sentiment surrounding pro-crypto U.S. President-elect Donald Trump.
This surge occurred just before his inauguration, with Bitcoin rising 3.8% in 24 hours. Currently, it trades at $108,797. Ether also saw gains, climbing 4.7% to $3,431, while Solana and Dogecoin experienced declines.
The price increase in Bitcoin reflects expectations for more favorable crypto policies in the U.S. Ben El-Baz from HashKey Global noted that the rise in Bitcoin and other cryptocurrencies is linked to hopes for new regulations that could boost prices further this year. The launch of TRUMP and MELANIA memecoins has attracted retail investors, adding to the momentum.
Research analyst Min Jung mentioned that Trump-related news likely fueled the rally. There are rumors about a potential bitcoin strategic reserve mentioned in a leaked inauguration speech script, although this is unconfirmed. The market is currently driven by speculation and anticipation surrounding Trump’s presidency.
The cryptocurrency market has seen significant volatility, particularly after the launch of the Trump memecoins. Over $1.2 billion in liquidations occurred on centralized exchanges within 24 hours, marking a major liquidation event for January.
Augustine Fan from SOFA described memecoins as a “zero-sum game,” indicating that the rise of TRUMP and MELANIA has drained liquidity from the market, posing risks for late investors. He expressed concerns that these meme-driven trends could overshadow important institutional developments in the crypto industry.
While Solana initially gained from the memecoin launch, the liquidity shift negatively impacted smaller altcoins. Jung noted that small-cap coins, especially AI-related tokens and those with market caps under $100 million, faced significant declines as funds moved towards the TRUMP and MELANIA memecoins.
