Will Trump's inauguration push Bitcoin above $100,000? Traders, pay attention
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As Trump is about to be re-inaugurated, the market is at a critical turning point. Bitcoin (BTC) has maintained a stable price of around $98,000 for two consecutive days, setting the stage for potential volatility in the coming days. With the push of New Year hype, the market seems to have entered a bullish cycle, but this situation could undergo a significant change as Trump's inauguration approaches.
Trump's Influence and Market Changes
In the fourth quarter of last year, Trump's influence drove Bitcoin prices close to $100,000, but this upward momentum quickly cooled down after broader economic forces intervened. The countdown to Trump's inauguration has begun, and the market is preparing for possible turbulence. Although Bitcoin has seen a short-term rise recently, market changes and overall economic trends will continue to have a profound impact on Bitcoin and the cryptocurrency market.
Changes in Exchange Reserves
Under Trump's influence, Bitcoin's exchange reserves first surged by 1.7% to 2.43 million BTC, marking the largest increase in three months. However, this situation did not last long, and exchange reserves have now fallen back to 2.3 million BTC, the lowest level in four years, indicating that more and more Bitcoin is being withdrawn from exchanges. This change in Bitcoin's liquidity may affect market sentiment and price trends.
Despite the fluctuations in exchange reserves, the decline in open interest (OI) and trading volume still indicates a relatively weak market sentiment. Open interest has dropped to $60 billion, down from $70 billion when Bitcoin was close to its peak of $108,000, and trading volume has also decreased by 6%. All of this suggests that the market is still not ready for a large-scale breakout. Nevertheless, the arrival of Trump's inauguration could serve as a catalyst for a market breakthrough, pushing Bitcoin past the six-figure mark and possibly setting a new historical high.
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