Bitcoin's price movement today is largely influenced by the anticipation surrounding Donald Trump's upcoming inauguration. Market optimism is building as traders expect pro-growth policies from Trump, which historically have favored asset price appreciation. This sentiment is bolstered by Bitcoin's strengthened correlation with the tech-heavy Nasdaq 100, which recently surged over 2%. Additionally, the rally in the dollar index has stalled, providing a lifeline to risk assets like Bitcoin. According to Matt Mena, a crypto research strategist, "Trump’s well-documented support for pro-growth policies and his track record of favoring asset price appreciation further reinforces the bullish outlook for bitcoin."
The market is also reacting to a significant drop in Bitcoin futures open interest, which has decreased to its lowest level since early November. This suggests that the recent price action is more spot-driven rather than leverage-driven, indicating a more stable and organic growth in Bitcoin's price. The anticipation of Trump's inauguration on January 20 is seen as a potential catalyst for a breakout, with Bitcoin revisiting the $100,000 mark and possibly setting new record levels. The overall crypto market has gained approximately $400 billion in market capitalization, reflecting strong investor confidence.
Bitcoin's price has increased by 1.46% today, reaching a high of $101,445.42.