Bitcoin Soars to $111K Before Trump’s Inauguration—Is a Crypto Shake-Up Coming?

Bitcoin just shot up over 6% in minutes at the start of this week, hitting a new high right before Donald Trump’s inauguration.

For a brief moment on Jan. 20, BTC ($107,700) jumped past $109,000, smashing its previous all-time high of $108,000 from Dec. 17, 2024.

With the president taking office yesterday, 24-hours later and the price of Bitcoin has lost 5.44%, however many in the crypto industry are hoping for a more relaxed regulatory environment under the new Trump administration.

In this price analysis, we will go through the price action of Bitcoin, Ethereum and Solana, as well as evaluate the potential impact of Trump’s policies on crypto adoption and regulation.

Trump Administration Impact on Crypto Adoption and Regulation

With Donald Trump taking office this week, traders are eyeing his expected crypto-related executive orders. Reports suggest he may push for a national Bitcoin reserve and direct the SEC to ease regulations.

The market is optimistic about a crypto-friendly president, but analysts warn that delays in implementing policies could trigger a "sell the news" reaction.

Meanwhile, Bitcoin ETFs flipped positive midweek, pulling in over $1.3 billion on Wednesday and Thursday after four days of outflows.

With U.S. stock markets closed for Martin Luther King Jr. Day, Friday was the last full trading day before Trump's first official actions. Analysts believe if Trump follows through on his crypto plans, some U.S. states might establish their own Bitcoin reserves.

Bitcoin Price Analysis - BTC Derivatives See a Surge in Volatility

Bitcoin dropped by 5.44% from $108,432 to $102,437. Just shortly before the inauguration, the cryptocurrency had reached an all time high of $111,000.

Despite the short-term drama, the key moving averages are still playing nice, and the daily RSI is holding strong near the midpoint.

The derivatives market is also buzzing with excitement as Bitcoin’s latest price swings keep traders on their toes.

Open interest has climbed 3.69% to $70.80 billion, and the long-short ratio has tipped in favor of the bulls—meaning more traders are betting on Bitcoin heading up rather than down.

Meanwhile, the funding rate has remained positive at 0.0141%, a sign that despite some fresh bearish plays, the market still leans bullish. In short, traders aren’t backing down from the Bitcoin rally just yet.

Ethereum Price Analysis - ETH Open Interest Surges to $31.45 Billion

Ethereum is currently stuck in a falling channel on the daily chart, but it’s not giving up just yet. Strong support at the 50% Fibonacci level ($3,158) gave ETH a much-needed bounce, keeping the bulls in the game.

After shaking off lower price rejections in the past two intraday candles, Ethereum is back on its feet at $3,290—up 2.51% from its opening price of $3,211.

That said, the current pullback from the overhead trendline hints at a possible continuation of the downtrend toward local support. But here’s the twist: those lower price rejections suggest a double-bottom reversal could be brewing near $3,158.

Adding to the suspense, the daily RSI is flashing a bullish divergence—potentially fueling a turnaround. However, sellers aren’t backing down either, as a bearish crossover between the 20-day and 50-day EMAs signals increased selling pressure. So, while Ethereum’s at a crossroads, the bulls aren’t out of the fight just yet!

With volatility refusing to chill, Ethereum’s derivatives market is flashing mixed signals. Open interest has ticked up by 0.55%, now sitting at $31.45 billion—so traders are definitely paying attention.

 The long-to-short ratio? Still bearish at 0.9554, meaning there’s no shortage of skeptics. But here’s the twist: the funding rate has climbed to 0.0108%, suggesting that bullish traders aren’t backing down just yet. Despite the recent market swings, they’re holding onto their long positions, confident that ETH has more gas in the tank.

Solana Price Analysis - Can SOL Break the $300 Barrier This Week?

The daily chart shows Solana breaking out like it just got a fresh energy boost, pushing past local resistance with a solid bullish breakout. This move is backed by a double-bottom reversal near $175—a classic power move.

Buyers are still in control above the 200 EMA, fueling an impressive 58% surge over the past week. Starting from a low of $169.22, Solana has almost doubled in value, proving the bulls mean business.

The rally has delivered a streak of green candles, though Sunday’s all-time high came with a slight pullback, snapping the streak with a bearish daily close. Still, no need to panic—the indicators are looking strong.

The 50 and 20 EMA just crossed bullishly, signaling momentum isn’t fading yet. Plus, the daily RSI has hit the overbought zone, further reinforcing the case for continued upside. In other words, Solana’s still got gas in the tank!

Using Fibonacci levels, Solana’s next pit stops look like $286 and $317, meaning this rally has a solid shot at breaking the $300 psychological barrier—because why stop now?

On the flip side, if things cool down, $230 (the 78.6% Fibonacci level) stands as the key support zone. As long as Solana holds above that, the bulls are still in the driver’s seat.

What Experts are Saying?

Bitcoin could see a sell-off as Trump takes office, warns BitMex co-founder Arthur Hayes. Swarm’s Philipp Pieper, however, believes Monday’s price action will be mostly noise.

Traders are more focused on what Trump’s administration will actually implement. eToro analyst Simon Peters points out that Trump recently complained about high interest rates, hinting he may push for lower ones—potentially a boost for crypto.

If reports of crypto-friendly executive orders are accurate, analysts expect a long-term Bitcoin uptrend. Pieper says clearer regulations under Trump could lift prices, especially with improving macro conditions like cooling inflation.

More liquidity in the market tends to drive asset prices higher, Pieper adds. However, Youhodler’s Ruslan Lienkha warns that Trump’s trade policies—like tariffs—could increase inflation, hurting financial markets.

Circle CEO Jeremy Allaire believes President Trump could introduce policies that boost the crypto industry, including executive orders to remove adoption barriers, Reuters reported on Jan. 20.

Speaking at the World Economic Forum in Davos, Allaire stressed the need to reverse restrictive measures like the SEC’s Staff Accounting Bulletin (SAB) 121. He said:

SAB 121 effectively penalized banks and financial institutions for holding cryptocurrencies on their balance sheets.

Removing these regulations, Allaire added, could help digital assets integrate more smoothly into traditional finance.

Final Take

The cryptocurrency market saw a pullback today after a brief surge in trading activity during Donald Trump’s inauguration on Monday. Bitcoin (BTC) dropped below the $102,000 threshold, marking a 5.44% decline over the past 24 hours. 

Altcoins and meme coins also faced sell-offs, with TRUMP emerging as the biggest loser of the day. It is worth indicating that these were predictions, as market analysts had anticipated increased volatility surrounding Trump’s return to office. 

The dip follows an influx of speculative trading earlier in the week, driven by renewed interest in how his presidency might impact the crypto landscape.

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