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20.01.2025 03:55 PM
BTC/USD: Defying Records — Bitcoin Hits a New All-Time High Ahead of Trump's Inauguration

After a brief pullback, Bitcoin has reached a new all-time high. The sharp surge in BTC is primarily attributed to the "Trump factor," as Donald Trump assumes office as the U.S. President today.On January 19, Melania Trump, following her husband's lead, launched her own cryptocurrency—a meme coin named $MELANIA. The market reacted strongly to the news, causing $TRUMP (Trump's cryptocurrency) to crash by over 60%, and Bitcoin briefly declined below $100,000. However, this was a momentary reaction. Both TRUMP/USD and BTC/USD have since rebounded, with Bitcoin climbing sharply above the $100,000 target. Within less than an hour, BTC surged from $102,000 to $109,200, setting a new all-time high. The Fear and Greed Index also spiked, reaching 77 points, signaling "extreme greed" among market participants.

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The rally in Bitcoin is largely driven by optimism surrounding Trump's presidency. During his campaign, Trump was the first presidential candidate to openly support the development of digital assets. Market participants are betting that the White House will implement crypto-friendly policies, with no indications so far to the contrary. It appears likely that Trump's administration will adopt a more favorable approach toward crypto assets.

Signals of Support for Crypto Under Trump

The launch of $TRUMP and $MELANIA just before Trump's inauguration as the 47th President of the United States sends a strong signal about his administration's commitment to simplifying crypto regulations.

In December 2024, Trump nominated Paul Atkins as the Chair of the Securities and Exchange Commission (SEC). Atkins is well-known for his pro-crypto stance, and his appointment could significantly reshape the regulatory landscape for digital currencies. According to a prominent investment firm leader, "With Atkins in charge, the regulatory winds will favor crypto companies."

Atkins has previously advocated reducing regulatory pressure on the crypto market, opposed excessive litigation against crypto firms, and supported the creation of a global regulatory framework for blockchain technology. Market participants expect him to dismiss several lawsuits the SEC has filed against crypto firms, reduce regulatory oversight of the industry, and support the development of new digital asset products. His leadership is seen as a pivotal moment for the crypto industry.

Legislative Momentum for Crypto

The market is also optimistic about the passage of critical legislation, including a long-awaited stablecoin bill. While the bill progressed through the relevant House Committee last year (thanks to a Republican majority), it stalled over a provision allowing states to approve stablecoin issuance without Federal Reserve oversight.

This year's Congress is expected to be more crypto-friendly, with Rep. French Hill, known for his pro-digital asset initiatives, set to lead the House Financial Services Committee.

Inauguration Day Expectations

The 47th President of the United States is expected to clarify his priorities and reaffirm his commitment to the crypto industry. Reports indicate he plans to sign approximately 100 executive orders within hours of assuming office, including one designating the crypto industry as a national policy priority.

Implications for BTC/USD

The bullish trend in BTC/USD is likely to persist, driven by early policy announcements, appointments, and comments from the new administration. The much-anticipated "era of change" for the U.S. crypto market seems to have arrived.

Key targets for BTC/USD's upward movement are $109,500 and $111,000 (the upper boundary of the Bollinger Bands indicator on the weekly timeframe).

Irina Manzenko,
Analytical expert of InstaForex
© 2007-2025
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