TLDR:
- Bitcoin reached a new all-time high of $109,588 on Trump’s inauguration day before falling to $101,820
- President Trump launched two memecoins ($TRUMP and $MELANIA) causing market volatility
- $TRUMP reached $75 with $15B market cap before dropping to $7B market cap
- Traders expected pro-crypto executive orders from Trump which didn’t materialize on day one
- Market sentiment was affected by Trump’s focus on other priorities like trade tariffs and TikTok
Bitcoin experienced a dramatic price swing during President Donald Trump’s first day in office, reaching a new all-time high of $109,588 before falling to $101,820, as traders reacted to the absence of expected crypto-focused executive orders.
The cryptocurrency market had built up expectations for immediate pro-crypto policies from the Trump administration, leading to a surge in Bitcoin’s price ahead of the inauguration. These hopes were based on Trump’s campaign promises and reports from industry insiders who anticipated swift action on digital asset regulation.
However, Trump’s first wave of executive orders focused on other priorities, including trade relations with Canada and Mexico, energy sector policies, and an extension of the TikTok implementation deadline. The lack of immediate action on cryptocurrency policy triggered a sell-off in the market.
BTC Price
Adding to the market volatility was Trump’s surprise launch of two memecoins. The $TRUMP token initially saw strong demand, reaching an all-time high of $75 and achieving a market capitalization of $15 billion during weekend trading. However, its value later declined, with the market cap dropping to $7 billion by Tuesday.
The First Lady’s entry into the crypto space with the $MELANIA token further complicated market dynamics. The launch raised ethical concerns among traders about the use of political office for personal financial gain in speculative markets.
Cryptocurrency analysts had mixed reactions to the day’s events. Daan Crypto Trades noted that while Bitcoin had started the week strongly by closing a CME gap, the market should expect volatility in both directions. The analyst advised investors to focus on quarterly rather than daily expectations.
$BTC Opened up with a small CME gap today but closed that straight away and went straight to new all time highs.
Good start of the week, which is going to be a very interesting one. pic.twitter.com/89HuFW83WD
— Daan Crypto Trades (@DaanCrypto) January 20, 2025
The broader altcoin market followed Bitcoin’s downward trajectory. Ether fell 5.2% to $3,238.23, while XRP declined 3.8% to $3.0528. Other major cryptocurrencies including Solana, Cardano, and Polygon saw losses ranging from 3.8% to 7%.
Market data showed that Dogecoin, one of the original meme cryptocurrencies, dropped 6.1% amid the increased attention on the new presidential memecoins. The decline suggested that even established meme tokens were not immune to the market uncertainty.
Technical analysts remained divided on Bitcoin’s short-term prospects. Altcoin Sherpa suggested that market movement would depend heavily on any crypto-related comments in Trump’s future speeches, particularly regarding a potential Strategic Bitcoin Reserve.
If a Strategic Bitcoin Reserve is announced, I think $BTC puts in a god candle and everything sends.
If not, I’ll see you at McDonald’s for our next shift
— Altcoin Sherpa (@AltcoinSherpa) January 20, 2025
Rekt Capital provided a more technical perspective, suggesting that Bitcoin had completed its “post-halving Parabolic Upside Phase” correction. The analyst pointed to historical patterns indicating that such corrections typically occur between weeks 6 and 8 of each parabolic phase.
History suggests this first Price Discovery Correction is now over$BTC #Crypto #Bitcoin https://t.co/bpcrCHvgKN
— Rekt Capital (@rektcapital) January 20, 2025
Crypto Jelle highlighted a multi-year cup and handle pattern in Bitcoin’s price action, maintaining a long-term price target of $140,000 despite the current market volatility. The analyst suggested that this technical formation might lead to further upward movement.
We’ve been watching the cup & handle for nearly a year now – looks like #Bitcoin wants to get it over with.
$140,000 remains the target for this one, don’t think we’ll be waiting for much longer.
Send it. pic.twitter.com/lrlwavAy8d
— Jelle (@CryptoJelleNL) January 20, 2025
The weekend trading session had shown initial stability, with Bitcoin maintaining positions above the $102,000 resistance level, which briefly acted as a support zone. However, this stability proved temporary as market participants began reacting to the political developments.
Trading volumes increased notably during the price decline, indicating active market participation. The increased activity suggested that traders were actively adjusting their positions based on the evolving political situation.
Circle CEO, creators of the USDC stablecoin, Jeremy Allaire was among several industry leaders who had expressed optimism about immediate pro-crypto policies. The lack of immediate action led to some reassessment of timeline expectations within the crypto community.
Market data showed that institutional interest remained steady despite the price volatility, with trading volumes on regulated exchanges maintaining consistent levels throughout the transition period.
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