Bitcoin (BTC) is off to a strong start on U.S. Presidential Inauguration Day, with new all-time highs nearing $110,000 amid growing speculation around Donald Trump’s crypto-friendly policies. Traders are bracing for major volatility as Trump takes office, with rumors swirling that he may announce a strategic Bitcoin reserve during his inauguration speech.
Key factors to watch this week:
1. BTC Hits New All-Time Highs: Bitcoin surged to record highs on Jan. 20 but remains below the $110,000 mark due to strong sell pressure. Data from Cointelegraph Markets Pro and TradingView shows resistance at key levels as traders anticipate further moves.
2. Trump’s Crypto Influence: The market is reacting to Trump’s potential policies, with traders eyeing his speech for any major crypto announcements. His administration’s stance on Bitcoin could significantly impact the market’s direction.
3. Volatility and Liquidity Battles: Market data shows entities actively selling into the price near $109K, creating a strong sell wall. Analysts suggest it will take substantial buying power to push BTC further into price discovery.
4. Macroeconomic Factors on Hold: While U.S. inflation and broader economic concerns are temporarily sidelined, they are expected to resurface soon and influence Bitcoin’s trajectory.
5. Bitcoin Exchange Reserves Drop: On-chain data reveals that BTC available on exchanges is at its lowest level since 2018, indicating that investors are holding rather than selling, adding to the bullish outlook.
As the week unfolds, traders remain cautious yet optimistic, closely watching Trump’s impact on Bitcoin’s next moves.
Source: Cointelegraph
