Bitcoin Poised to Top Record as Trump Inauguration Nears, Major Coins Due for 10% Swings: Traders

Key Points

  • Crypto traders are optimistic about bitcoin surpassing its record highs as President-elect Donald Trump's inauguration approaches.
  • The price of bitcoin has risen 11% from recent lows, reaching over $100,000, spurred by a softer-than-expected core CPI report.
  • Trump's pro-crypto stance and potential policy announcements are fueling market optimism.
  • Bitcoin's positive correlation with the Nasdaq 100 has strengthened, and the S&P 500 is nearing a key level of 6,000.

Summary

Crypto traders are increasingly optimistic as bitcoin (BTC) approaches its record highs, with the price recently surpassing $100,000. This surge follows a softer-than-expected core CPI report, which has alleviated concerns about hawkish Federal Reserve policies, allowing markets to focus on President-elect Donald Trump's upcoming inauguration. Trump's pro-crypto stance, including his pledge to create a national strategic bitcoin stockpile, has significantly influenced market sentiment. Analysts like Matt Mena from 21Shares believe that the removal of inflation fears could propel bitcoin past its previous high of $108,000, setting new records. The bullish outlook is supported by a rally in traditional assets, particularly the Nasdaq 100, and a stalled rally in the dollar index, which has provided a boost to risk assets. However, the market anticipates volatility due to potential policy announcements from the new administration, with expectations of significant price movements in major cryptocurrencies like BTC, SOL, ETH, and XRP.

coindesk
January 16, 2025
Crypto
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