Bitcoin Set to Smash $108K as Trump's Inauguration Approaches

As the countdown to Donald Trump's inauguration on January 20 ticks down, cryptocurrency traders are brimming with optimism and speculate that Bitcoin (BTC) could soon hit record highs. Following a significant dip earlier in the week, Bitcoin has surged 11%, rebounding from lows below $90,000 and briefly surpassing the $100,000 mark in the past 24 hours, according to CoinDesk data.

The latest price movement comes on the heels of a lower-than-expected core Consumer Price Index (CPI) report, easing fears of a hawkish Federal Reserve and shifting market focus toward the forthcoming inauguration. Many believe that Trump's leadership, associated with pro-crypto policies, could catalyze a positive shift in the market.

Matt Mena, a crypto research strategist at 21Shares, emphasized that easing inflation concerns could pave the way for Bitcoin to comfortably break through the formidable $100,000 resistance level prior to Trump’s swearing-in. This psychological and technical milestone would ideally set Bitcoin up to challenge its all-time high of $108,000 as market sentiment grows more optimistic.

Mena also noted, “Trump’s historical support for growth-oriented policies and asset appreciation only strengthens the bullish outlook for Bitcoin and other risk assets.” This optimism in the crypto market aligns with a broader rally in traditional financial assets, highlighted by the Nasdaq 100’s over 2% jump on Wednesday. Bitcoin's correlation with this tech-heavy index has also increased significantly, indicating a potential positive trend.

Additionally, the dollar index, which measures the value of the U.S. dollar against a basket of major currencies, has stalled its rally. This development has provided a boost to higher-risk assets, with the S&P 500 nearing the critical psychological level of 6,000. According to Mena, breaking this benchmark could signal the next leg of a global asset bull market.

Trump's election victory has notably increased Bitcoin's value from $70,000 to above $108,000, altering the crypto landscape dramatically. Notably, the former president had expressed plans to establish a national strategic Bitcoin stockpile. Nathan Cox, Chief Investment Officer at Two Prime, stated that if Trump signals an intent to create this strategic reserve, even without immediate action, the implications for Bitcoin's price could be substantial. “Once Bitcoin breaks through prior highs of $108,000, there's virtually no ceiling to how rapidly it could ascend, driven by the immense global demand for a Bitcoin reserve strategy,” Cox stated.

In what’s shaping up to be a potentially turbulent week ahead, Paul Howard from Wincent indicates that anticipated announcements regarding regulatory frameworks for the digital asset industry and banking rules suggested by the new administration have not been fully accounted for in current prices. "With a change in administration, expect to see movement of +/-10% across major cryptocurrencies like BTC, SOL, ETH, and XRP. Market prices will respond to the outcomes of new policy announcements by the incoming President," Howard warned.

Investors, keep an eye on the upcoming weeks as market conditions become increasingly volatile and pivotal decisions loom on the horizon!