Cryptocurrency Market Volatility Amid Trump Inauguration

The cryptocurrency market is experiencing significant fluctuations as digital asset values remain volatile. This instability comes just hours before the swearing-in ceremony of US President-elect Donald Trump. Bitcoin, the leading cryptocurrency, has seen a notable decline in its price, reflecting broader trends in the market. Investors are closely monitoring these developments, as they could signal shifts in market sentiment and trading strategies.
Bitcoin’s Price Drop and Market Reactions
In the past 24 hours, Bitcoin’s price has dropped by 2.82 percent on international exchanges, according to CoinMarketCap data. As of now, Bitcoin is trading at approximately $102,095 (around Rs. 88.2 lakh) on global platforms. In India, the situation is similar, with Bitcoin’s price falling by two percent to trade at $107,951 (roughly Rs. 93.3 lakh) on exchanges like BuyUcoin.
Experts suggest that Bitcoin is facing a critical test at the $105,000 mark (approximately Rs. 90.8 lakh). Avinash Shekhar, Co-Founder and CEO of Pi42, noted that a decisive breakthrough at this level could lead to new highs, potentially reaching $110,000 (about Rs. 95.1 lakh). However, if Bitcoin fails to maintain this level, it may retrace to support levels at $98,000 (around Rs. 84.7 lakh) and $95,000 (roughly Rs. 82 lakh).
This volatility is not unique to Bitcoin; it reflects broader trends in the cryptocurrency market, where investor sentiment can shift rapidly based on news and events. As the inauguration approaches, many traders are cautious, leading to a decrease in trading volumes and increased uncertainty.
Ether and Other Cryptocurrencies Follow Suit
Ether, the second-largest cryptocurrency, is also feeling the pressure. Its price has dipped by about one percent on both national and international exchanges. Currently, Ether is trading at $3,297 (approximately Rs. 2.85 lakh) on global platforms and at $3,503 (around Rs. 3.03 lakh) on Indian exchanges.
The decline in Ether’s value mirrors the overall trend in the cryptocurrency market, where many digital assets are experiencing downward pressure. Notably, the launch of new digital assets associated with Donald Trump and his wife, Melania, has contributed to this volatility. These altcoins saw a surge in their prices shortly after their launch, indicating a shift in investor focus.
The Official Trump token is currently trading at $47.8 (around Rs. 4,314), while the Melania Meme token is priced at $10.04 (approximately Rs. 868). The introduction of these tokens has sparked interest among retail investors, as evidenced by a spike in Google searches for crypto-related terms. This suggests that the market is reacting to the potential for new opportunities, even as established cryptocurrencies like Bitcoin and Ether face challenges.
Market Trends and Institutional Interest
Despite the recent downturn, there are signs of renewed interest in the cryptocurrency market. Edul Patel, CEO of Mudrex, highlighted that the launch of Donald Trump’s digital assets has raised investor confidence. Many are anticipating a crypto-friendly announcement following the inauguration. This optimism is reflected in the increased participation of institutional investors.
MicroStrategy, a prominent business intelligence firm, has hinted at Bitcoin purchases for the 11th consecutive week. Additionally, Bitcoin exchange-traded funds (ETFs) have recorded positive net inflows for three weeks in a row. These developments indicate that institutional interest in cryptocurrencies remains strong, even amid market fluctuations.
However, the overall valuation of the cryptocurrency market has shrunk by 2.30 percent in the last 24 hours, currently standing at $3.55 trillion (approximately Rs. 3,07,06,394 crore). The CoinDCX Research Team noted that liquidity appears to be flowing into newly launched meme coins, which may delay a potential altseason. This shift in focus could impact the performance of established cryptocurrencies in the near term.
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