Bitcoin hit a new all-time high just hours before the second time President Donald Trump was set to enter the white house.
Market euphoria peaked as industry proponents hoped for friendlier regulations under a new administration, with the overall cryptocurrency market capitalization reaching a monthly high above $3.8 trillion.
The altcoin market, despite being on the greener side, saw gains concentrated across a few leading meme coins, as a lot of the liquidity in the sector was absorbed by Trump family-launched tokens like Official Trump (TRUMP) and Melania Meme (MELANIA), both of which had seen significant rallies over the past 24 hours.
The market’s risk-on sentiment made a strong comeback, as reflected in the crypto fear and greed index, which surged into the extreme greed zone, reaching 76 at the time of writing—a notable improvement from last week’s 61.
Why Bitcoin is rising?
Bitcoin’s rally today was powered by hopes that Trump would create a Bitcoin reserve within the first 100 days of his return to the White House. Crypto enthusiasts on the decentralized betting platform Polymarket put the odds of this happening at 55% when writing.
Additionally, Trump’s recent launch of an official meme token just days before his inauguration has further boosted investor confidence in his pro-crypto stance.
Another theory suggested by multiple experts is that individuals with undisclosed knowledge about Bitcoin—potentially linked to the Trump administration—might be driving prices higher.
Bitcoin hit an all-time high of $108,786 during the early Asian trading hours before settling above $106,000. At press time, the bellwether cryptocurrency was up 1.2%, while its weekly gains extended to 15.9%.
The general consensus across social media platform X was that Bitcoin was still in a bull market and is expected to rally even higher in the coming days.
Crypto analysts like Kaizen and Gladiator expect price targets of around $150,000 if Trump moves ahead with his plans for a Bitcoin strategic reserve.
Adding to the optimism for a continued short-term rally, popular trader Rekt Capital highlighted historical Bitcoin trading patterns in a January 20 post on platform X, stating that Bitcoin’s Price discovery correction is now over.
He noted that Bitcoin typically undergoes a price discovery phase, with corrections occurring between the 6th and 8th weeks of its bull run, often lasting for several weeks.
Meanwhile, crypto commentator Nunya Bizniz focused on a key upward trendline nearing a breakout point, suggesting that Bitcoin could rally further. Based on his analysis, the breakout is expected to occur around $107,000–$108,000, aligning with a target of $122,000 by early February.
The altcoin market shows subdued performance
Meme coins led today’s gains as the market rushed to trade Trump-family-backed cryptocurrencies, draining a lot of liquidity from other prominent tokens.
Across the broader altcoin sector, traders remained slightly bearish, and the altcoin season index dipped to 41, a four-point reduction from last week.
However, according to analyst Cryptosahintas, the situation could reverse in favor of altcoins soon. He pointed to a death cross that had formed on the Bitcoin dominance chart, noting that it could signal the start of a downward trajectory for the metric.
A drop in Bitcoin dominance toward the low 50s is often seen as a signal for the start of an alt season. Upon writing, Bitcoin dominance stood at 57.4%.
The top-performing altcoins for the day were:
Melania Meme
Melania Meme (MELANIA) was the highest gainer among the largest 100 crypto assets by market cap on Jan. 20 notching a 21% surge over the past day priced at $8.9 at press time. Its market cap stood at $1.77 billion while witnessing a 570% spike in trading volume at a massive $8 billion.
Source: CoinMarketCap
The meme coin rallied due to its direct link to the Trump family, specifically soon to be the First Lady of the United States, Melania Trump. Following its launch early today, the meme coin rose 52% to $12.95 within 2 hours following which it faced a pullback and parted off with most of its gains.
SPX6900
SPX6900 gained 16.3% over the last day, touching an all-time high of $1.72 earlier on the day before settling at $1.62 at press time. The meme coin’s market cap was seated at over $1.5 billion while its daily trading volume jumped 80%, hovering around $189 million.
Source: CoinMarketCap
Today’s gains transpired after Maneki Neko, Inc., a web3 animation firm, hinted at a partnership with the meme coin project, which is a parody of the S&P 500 index.
Further, the meme coin’s holder base has also been on the rise lately. Notably, over 43,000 investors had SPX6900 in their wallets as of Jan. 20, after a 48% surge from Jan. 1.
This, paired with Bitcoin hitting a new all-time high, has helped fuel today’s gains.
Raydium
Raydium (RAY) gained 8.6% over the last day trading at $7.37 as its market cap hit an all-time high of $2.1 billion at the time of writing.
Source: CoinMarketCap
RAY rallied due to its growing prominence in the meme coin market, accounting for over 60% of daily DEX volume within the Solana ecosystem. Notably, the platform generated the highest fees over the past 24 hours, over double those of more prominent DeFi protocols such as Jito and Orca.
Its daily trading volume surged following the launch of Official Trump (TRUMP) and Melania Meme (MELANIA).
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