Bitcoin reached a new all-time high in anticipation of Trump’s inauguration and prioritization of cryptocurrencies, but the event disappointed many traders. BTC has since corrected to $105,000 on Tuesday. Crypto assets in the United States may face volatility in the coming weeks if the Bitcoin Strategic Reserve and other promises made before the election are not fulfilled.
Bitcoin is missing from the agenda on Trump’s first day
President Donald Trump assumed the Oval Office on January 20, following his inauguration. While the cryptocurrency market was pinning its hopes on an executive order or declaring cryptocurrencies as a national “priority” on the first day the crypto president took office, it was a disappointing day for the pro-crypto masses.
Bitcoin (BTC) retreated from its all-time high above $109,000 and settled near $105,000 on Tuesday. The top altcoins ranked by market cap, Ethereum (ETH) and Ripple (XRP), erased their recent gains alongside Bitcoin.
President Trump signed more than 80 executive orders on his first day back in office while Bitcoin was out of action. The crypto chief promised a strategic bitcoin reserve and pro-crypto policies and regulations, in response to campaign donations from political action committees backed by cryptocurrency and protocol companies in the United States.
It remains to be seen whether Bitcoin’s strategic reserve will materialize in the United States, or take priority over a slew of other changes in the world’s largest economy.
The cryptocurrency market saw $816 million worth of liquidations, as Trump missed Bitcoin and pro-crypto actions on his first day in office. Farside Investors data shows that institutional investors have become increasingly bullish on Bitcoin in the last few days of the week, as markets remained closed on Monday, and traders should keep their eyes open for inflows into US spot Bitcoin ETFs on January 21, Tuesday.
President Trump’s crypto-friendly appointments to key positions like the Treasury Department and the Securities and Exchange Commission (SEC) could help support the sector overall, helping the market cap hold above $3.75 trillion.
Top 5 most popular symbols in the United States
As cryptocurrency markets wait for Trump to push the industry toward clearer policy and regulation soon after his inauguration, the top three popular tokens in the US are Official Trump (TRUMP), Melania Meme (MELANIA), and Department of Government Efficiency (DOGE). Bitcoin ranks fifth in terms of popularity and 24-hour trading volume, as recorded by CoinGecko.
Even as the official price of Trump (Trump) and Melania (Melania) fell after the inauguration, on-chain intelligence trackers have identified large wallet investors buying the dip in the two tokens. This indicates that buyers are anticipating a rebound in the tokens.
Analysts at The Block identified a token that gained from the growing popularity of meme tokens and noted that the TRUMP memecoin launched on January 17, rising to a fully expanded valuation of $75 billion within 48 hours. This represents a 10,000 times price increase for Trump.
The MELANIA memecoin was launched on January 19 while Trump’s price fell by almost 50%. Following the launch of the two meme tokens, the total value of assets locked in Solana (SOL) jumped to $3.5 billion, a 41% increase in TVL within 48 hours.
While SOL is ranked fourth most popular in the United States, the token continues to gain from the launch of the meme coin and a successive increase in user activity on its blockchain.
What to expect from Solana, Bitcoin, and XRP
Solana’s weekly price chart shows signs of further gains in the token. SOL is 20% away from its peak of $295.83. The closest support area is the fair value gap between $223.18 and $229.44. The RSI is reading 60, below the exaggerated level of 70, and the Moving Average Convergence Divergence indicator is flashing green histogram bars above the neutral line.
MACD indicates the underlying positive momentum in the direction of SOL price on the weekly time frame.
The outlook for Bitcoin and XRP remains positive. Bitcoin is hovering near its all-time high at $109,000 and the largest cryptocurrency could target the 127.2% Fibonacci retracement level at $125,080. This represents a gain of over 18% in BTC price.
The RSI and MACD, two major momentum indicators, support a bullish thesis for Bitcoin. The RSI is reading 69 and sloping to the upside.
XRP could rise another 25% and extend its gains to enter price discovery at $3.9815, the 141.40% Fibonacci retracement level of the rise to the altcoin’s all-time high. Both the Relative Strength Index (RSI) and MACD support the bullish thesis for the altcoin.
The RSI shows that XRP is currently overvalued, while the MACD shows positive fundamental momentum. Traders should monitor the MACD for signs of a trend reversal and XRP could find support at $2.6977, which is the 50% Fibonacci retracement level of the rise to $3.4000.
Experts are optimistic about Trump’s impact on cryptocurrencies
David Morrison, chief market analyst at Trade Nation, told Crypto.news in an exclusive interview:
“There was widespread disappointment throughout the cryptocurrency sector as the new president made no mention of the US cryptocurrency reserve or deregulation. Bitcoin rose to a record high early yesterday morning on hopes of some sort of support from President Trump, After the TRUMP token was issued on Friday night.
But traders were quickly bailed out of long speculative trades as Trump declined to comment. However, actions speak louder than words. President Trump’s very crypto-friendly appointments to the Treasury Department and the Securities and Exchange Commission (SEC) should help support the sector overall.”
Morrison remains optimistic about the gains cryptocurrencies have made during the Trump administration.
James Toledano, COO of Unity Wallet, notes that over $816 million in long positions and $307 million in short positions were liquidated, indicating a high-risk environment where traders were over-leveraged on both bullish bets. And bearishness in a very frothy market.
The liquidations stemmed not only from excessive market leverage and speculation leading up to the inauguration but also from Trump’s omission of Bitcoin in his speech at the event.
Toledano told Crypto.news:
“While Polymarket estimates there is a 56% chance of an executive order being issued within the first 100 days of Trump’s presidency, significant changes to cryptocurrency policy take time and require coordination with the Federal Reserve and regulators.
Price spikes associated with major political events are often rooted in speculative narratives and wishful thinking, rather than tangible policy shifts. Market volatility underscores the need for tempered expectations and a focus on long-term fundamentals rather than speculative parameters.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
