Lucía Peña
Bitcoin briefly surpassed the $109,000 mark on Monday, fueled by optimism around the pro-crypto stance of President-elect Donald Trump, who is set to take office today. The cryptocurrency reached $109,111 early in the day, according to PRIME’s price tracker, before settling at $108,797 at the time of writing.
Ether followed suit with a 4.7% rise to $3,431, while Solana dropped 5% to $260. Meanwhile, Dogecoin slipped 2.4% to trade at $0.38.
The rally in BTC and select cryptocurrencies reflects market hopes for favorable crypto regulations under the new administration. Ben El-Baz, managing director of HashKey Global, noted, “Bitcoin’s rise above $108,000 signals optimism about future U.S. crypto policies, alongside the broader strength of the U.S. economy.”
El-Baz highlighted the role of recently launched TRUMP and MELANIA memecoins in attracting retail investors, further fueling market activity.
Speculation Over Strategic Bitcoin Reserves
Min Jung, a research analyst at Presto Research, attributed the rally to Trump-related speculation. “Unverified rumors suggest a potential announcement of a BTC strategic reserve in Trump’s inauguration speech,” Jung stated. While these rumors remain unconfirmed, they have intensified market excitement ahead of the inauguration.
The cryptocurrency market has seen heightened volatility in the wake of the Trump family’s memecoin launches. Over $1.2 billion was liquidated across centralized exchanges in the past 24 hours, making it the largest liquidation event so far in January.
Augustine Fan, head of insights at SOFA, expressed concern over the impact of memecoins. “The rise of TRUMP and MELANIA has absorbed significant liquidity, creating high risks for late entrants,” Fan said. “These speculative tokens are zero-sum games, and the industry must refocus on institutional advancements.”
Liquidity Shifts Impact Altcoins
While Solana initially benefited from the Trump memecoin launch, smaller altcoins suffered as liquidity shifted. According to Jung, “Smaller-cap tokens, including AI-focused projects and sub-$100 million market cap memecoins, experienced steep declines as funds moved to TRUMP and MELANIA.”
With a pro-crypto administration taking the reins in the U.S., market participants are eager to see how policy developments unfold. While the Trump memecoin frenzy has sparked excitement, it has also raised concerns about market stability. The coming weeks will reveal whether this momentum sustains or gives way to a broader focus on long-term institutional developments.
