On January 20, Bitcoin surged dramatically, briefly surpassing $109,000 and eclipsing its earlier high of over $108,000, which was set in mid-December 2024.
According to data from TradingView, the cryptocurrency hit its peak at 6:55 am UTC, reaching an impressive $109,036.
However, the momentum was short-lived, as Bitcoin quickly retreated back below the $108,000 mark within a matter of minutes.
By the time of this report, it was trading at around $108,342, reflecting a solid 3% increase over the preceding 24 hours.
Political Impact on Cryptocurrency
This spike in Bitcoin’s value coincided with the looming inauguration of Donald Trump as the 47th president of the United States, anticipated at 4:00 pm UTC.
His election has been seen as a pivotal factor contributing to the bullish sentiment permeating cryptocurrency markets.
Following his win on November 6, 2024, the crypto realm experienced an energetic rally, propelling Bitcoin above the $100,000 threshold for the first time in early December.
Speculation and Market Sentiment
The excitement among cryptocurrency enthusiasts appears closely tied to Trump’s proposed policies regarding digital currencies.
Key among these initiatives is the potential establishment of a strategic Bitcoin reserve for the U.S. This idea, alongside expectations for crypto deregulation, has fueled optimism within the market.
Intriguingly, speculation surrounding Trump’s possible implementation of a Bitcoin reserve within his first 100 days in office intensified just before Bitcoin reached its latest record.
Notably, on the prediction market platform Polymarket, the odds of a U.S. Bitcoin reserve began to climb, hitting a multi-month high of 69% at 6:30 am UTC—just moments before Bitcoin’s price surged.
Official Trump Memecoin
Additionally, it’s essential to highlight that on January 18, Trump initiated trading on his newly launched memecoin, Official Trump (TRUMP).
Introduced to the market on January 17, this token saw remarkable growth, potentially boosting Trump’s net worth by as much as five times, thanks to applications of natural language processing (NLP).
In summary, Bitcoin’s recent ascent has mirrored shifts in political landscapes and market sentiment, intertwining with the narratives surrounding Trump’s presidency and his vision for cryptocurrency in America.
Source: Cointelegraph
