Bitcoin (BTC) briefly reclaimed $100,000 after registering a jump of almost 3%, making a strong recovery after plunging below $90,000 a day prior. The increase can be attributed to fresh inflation data and regulatory developments considered bullish for the flagship cryptocurrency. However, BTC has slipped below $100,000 again as of writing and is trading around the $99,500 mark.
The crypto market capitalization jumped almost 3% to $3.49 trillion as major cryptocurrencies registered substantial gains. Ethereum (ETH) rose nearly 5% to reclaim the $3,300 level and is currently trading around $3,371. Ripple (XRP) is up almost 10% and has registered a staggering increase of 30% over the past week. Solana (SOL) is up almost 7%, while Dogecoin (DOGE) is up nearly 5%. Cardano (ADA), Tron (TRX), Stellar (XLM), Chainlink (LINK), Hedera (HBAR), Polkadot (DOT), and Litecoin (LTC) also registered notable increases.
Trump’s SEC Leadership Set To Initiate Crypto Overhaul
Republican officials at the United States Securities and Exchange Commission (SEC) are preparing to overhaul the agency’s crypto policy as early as next week after Donald Trump’s inauguration. Commissioners Hester Pierce and Mark Uyeda are gearing up to initiate processes that will lead to guidance about whether the agency considers cryptocurrency a security. They will also review crypto enforcement cases pending in courts. Paul Atkins, Trump’s pick for SEC Chair, is expected to halt a crypto crackdown led by Gary Gensler. However, it is unclear whether the Senate will confirm him.
Pierce and Uyeda are set to hold a majority among the agency’s politically appointed commissioners once Gary Gensler steps down. Both commissioners were aides to Atkins when he was with the SEC and have a good working relationship. According to former SEC officials, the three have discussed potential crypto policy changes.
Analysts Warn Of Heightened Volatility
Analysts have warned of heightened volatility in the crypto market despite potential crypto-friendly policies of the incoming administration. According to Singapore-based QCP Capital, Trump’s actions are impacting the global markets even before he takes office. Inflation is a growing concern for the economy, even though job growth exceeded expectations, with non-farm payrolls coming in at +256,000 against the expected +165,000.
“While CPI appears to be moderating above the 2% target…market participants still expect December’s CPI to come in higher than the previous reading.”
Trump’s planned Tariffs on China are also stoking inflation fears, although the tariffs will likely be rolled out gradually instead of immediately. According to QCP, the markets are pricing in only two rate cuts for 2025 and 2026 as bond yields rise.
“Expect heightened volatility before and after the inauguration as markets digest and adjust to a new term under Trump.”
However, there is hope for crypto investors, as QCP points out that the Trump administration has crypto-friendly officials and that the new administration will issue several wide-ranging, crypto-friendly executive orders, providing the markets with a short-term tailwind.
Altcoins Rally
The altcoin market rose over 8%, double BTC’s gains as markets turned bullish. Solana (SOL) posted an impressive rally driven by on-chain activity and the integration of AI-based projects into its ecosystem. Stellar (XLM) and Ripple (XRP) continued their upward trajectory, with XLM rallying 14% and XRP rising over 12% on Wednesday. XLM and XRP share several similarities and were both co-founded by Jed McCaleb. They share several utility factors and aim to revolutionize cross-border payments and financial inclusion through decentralized networks. Meanwhile, Polygon (MATIC) gained 5% on Wednesday to move to $0.48, benefiting from growing demand for scalability solutions.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) briefly topped $100,000 on Wednesday thanks to fresh inflation data and regulatory developments that boosted stocks. The recovery comes after BTC plunged below $90,000 earlier in the week, dropping to a low of $89,941 before recovering. The Consumer Price Index data suggested that the Federal Reserve may be more likely to lower interest rates in the future, easing investor fears of an extended pause or higher interest rates. Low interest rates and treasury yields tend to make investors gravitate towards risk assets like BTC. Additionally, the new SEC leadership plans to overhaul the agency’s crypto policies. According to reports, the SEC could provide clear guidance on whether a cryptocurrency is considered a security, a clarification many in the crypto ecosystem have called for.
BTC is back in the red during the ongoing session after briefly surpassing $100,000 on Wednesday. BTC’s recent recovery came after it experienced a significant drop last week, slipping below key support levels and moving averages. BTC started the previous week on a positive note, rising 3.99% to go above $100,000 and settling at $102,228. However, markets turned bearish on Tuesday and BTC dropped over 5% to slip below the 50-day SMA and settle at $97.019. BTC continued to drop on Wednesday, going below the 20-day SMA to an intraday low of $92,546 before settling at $95,121. Sellers retained control on Thursday, driving BTC down by 2.53% to $92,710.
Source: TradingView
Despite the bearish sentiment, BTC recovered on Friday, rising over 2% to reach an intraday high of $95,799. However, it could not move past the 20-day SMA and ultimately settled at $94,818. The weekend began with a marginal decline on Saturday, with BTC dropping to $94,542 before a marginal increase on Sunday saw the price move to $94,484. BTC collapsed on Monday as it plummeted below $90,000, falling to an intraday low of $89,397. However, buyers bought the dip, allowing BTC to reclaim $90,000 and ultimately settle at $94,492, registering only a marginal decline. Sentiment changed Tuesday as BTC rose 2% to move past the 20-day SMA and settle at $96,566. Bullish sentiment intensified on Wednesday with BTC increasing 3.61% to move past the 50-day SMA and $100,000 to settle at $100,050. However, the price is back in the red during the current session, slipping below $100,000 and trading around the $99,650 level.
Ethereum (ETH) Price Analysis
Ethereum (ETH) surged past $3,400 on Wednesday as buyers propped up the price. However, it is back below $3,400 during the current session as its momentum stalls. ETH lost momentum after reaching an intraday high of $3,744 last Monday. With bearish sentiment returning, the price dropped over 8% on Tuesday, going below the 20 and 50-day SMAs and $3,500 to settle at $3,381. The price declined on Wednesday, falling to an intraday low of $3,217 before settling at $3,327. Sellers retained control on Thursday, driving ETH down 3.20% to $3,220.
Source: TradingView
ETH recovered on Friday, rising by 1.45% to $3,267. ETH could only register a marginal increase on Saturday, rising to $3,283, before dropping back in the red on Sunday and settling at $3,266. The current week began with bearish sentiment intensifying as ETH dropped to an intraday low of $2,927, briefly slipping below the 2000-day SMA. However, it recovered as buyers bought the dip, ultimately settling at $3,137 after a drop of almost 4%. The price recovered on Tuesday, rising nearly 3% to $2,336. Bullish sentiment intensified on Wednesday as ETH surged almost 7% to move past the 20-day SMA and $3,400 to settle at $3,450. However, it is back in the red during the current session, down almost 2% and trading around $3,381.
Solana (SOL) Price Analysis
Solana (SOL) registered a sharp drop on Tuesday after failing to go beyond the 50-day SMA. As a result, SOL dropped over 7% and settled at $202. Sellers retained control on Wednesday as SOL dropped to an intraday low of $188. However, it recovered from this level to settle at $197, just above the 20-day SMA. Selling pressure intensified on Thursday as SOL plummeted over 6% to go below the 20-day SMA and settle at $185. The price recovered on Friday, rising 1.46% to reach an intraday high of $193 before settling at $187. SOL experienced considerable volatility over the weekend as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as SOL registered marginal increases on Saturday and Sunday to end the weekend at $188.
Source: TradingView
SOL started the current week in the red, dropping to an intraday low of $169 as sellers took control. The price recovered from this level to settle at $182, a drop of almost 3%. SOL recovered on Tuesday, rising 2.57% to $187. Bullish sentiment intensified on Wednesday as SOL surged over 10% to go above $200 and the 20-day SMA to settle at $205. However, SOL is back in the red during the ongoing session, as sellers look to drive it below $200.
Bittensor (TAO) Price Analysis
Bittensor (TAO) spent most of last week in the red plummeting below the 50-day SMA on Tuesday to slip below $500 and settle at $499. The price continued to drop on Wednesday, falling below the 20-day SMA to an intraday low of $439 before settling at $466. Sellers retained control on Thursday as TAO dropped over 7% to $432. TAO encountered volatility on Friday as buyers and sellers attempted to establish control. Buyers ultimately gained the upper hand as TAO rose 1.50% to $439. TAO remained positive on Saturday, increasing 1.41% and settling at $445. However, it lost momentum on Sunday, dropping almost 1% and ending the weekend at $442.
Source: TradingView
Bearish sentiment intensified on Monday as TAO dropped over 5%, going below the 200-day SMA to an intraday low of $384. However, it recovered from this level to settle at $420. TAO continued to drop on Tuesday, falling almost 1% to $416. Market sentiment shifted on Wednesday, and TAO surged over 10% to move past the 200-day SMA and settle at $459. The current session sees TAO down almost 3% and trading around $447.
Ripple (XRP) Price Analysis
Ripple (XRP) conquered $3 after a significant jump of almost 18% on Wednesday, breaking above its sideways wedge pattern. With the $3 resistance zone broken, XRP could go on a bull run if buyers maintain momentum. XRP had been trading in a narrow range for most of last week but broke out on Saturday after registering an increase of over 10% and settling at $2.57. It could not go above the resistance around $2.60 and fell back in the red on Sunday, dropping almost 3% to $2.50.
Source: TradingView
The current week began with sellers driving XRP to an intraday low of $2.33. However, it rebounded from this level to register an increase of 0.79% and move to $2.52. Buyers retained control on Tuesday as XRP crossed the resistance at $2.60 and settled at $2.66. Bullish sentiment intensified substantially on Wednesday, with XRP surging almost 18% to go above $3 and settle at $3.14. However, XRP is down just over 2% and trading around $3.08 during the ongoing session as sellers look to drive it below $3.
Uniswap (UNI) Price Analysis
Uniswap (UNI) surged past the 20-day SMA on Wednesday but could not go above the 20-day SMA as momentum stalled around $14.50. As a result, it finds itself back in the red during the ongoing session. UNI dropped to an intraday low of $12.39 last Thursday after a highly bearish week, dropping below a key support level. However, it rallied on Friday, rising over 8% and settling at $13.94. UNI could not push higher thanks to the 20-day SMA, which acted as resistance. With sellers active at this level, UNI fell back in the red on Saturday, dropping just over 2% to $13.64. It registered a marginal decline on Sunday, ending the weekend at $13.63.
Source: TradingView
Bearish sentiment intensified on Monday as UNI fell to an intraday low of $12.08 before recovering and settling at $12.89, ultimately dropping 5.41%. Sentiment changed on Tuesday as UNI registered a rise of over 3% and moved to $13.32. Bullish sentiment intensified on Wednesday as UNI went above the 20-day SMA and settled at $14.52. Despite a substantial jump on Wednesday, UNI could not go past the 50-day SMA and found itself back in the red during the ongoing session, down over 3% and trading around $14.08.
Pudgy Penguins (PENGU)
Like most markets, Pudgy Penguins (PENGU) also declined last week, starting with a substantial drop of almost 14% on Tuesday. The price continued to drop on Tuesday, falling to an intraday low of $0.032 before recovering to settle at $0.035. PENGU fell below the 20-day SMA on Thursday after registering a drop of over 7%. Buyers attempted a recovery on Friday as PENGU rose to an intraday high of $0.035. However, they lost momentum after reaching this level. As a result, PENGU dropped to $0.033, registering only a marginal increase.
Source: TradingView
Sellers retook control on Saturday as PENGU dropped almost 2% to $0.032 before registering a marginal increase on Sunday to end the weekend at $0.033. Selling pressure intensified on Monday as the price fell to an intraday low of $0.028. However, it recovered from this level to reclaim $0.030 and settle at $0.031, ultimately registering a drop of almost 5%. Buyers returned to the market on Tuesday as PENGU rose nearly 2% to $0.032. Bullish sentiment intensified on Wednesday as PENGU surged almost 11% to $0.035. However, it is back in the red during the current session, down nearly 6% and trading at $0.033.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.