Bitcoin Price Drops 5% After Trump Inauguration – Can BTC Rebound to $110K?
Highlights:
- Bitcoin price falls 5% to $102K after reaching a new all-time high of $109,588 the previous day.
- Trump’s inauguration speech fueled the wobble in the price of BTC, which ignored references to crypto policy.
- Santiment data indicates that BTC prices quickly corrected, as social media showed major greed and Fear Of Missing Out.
The Bitcoin price dwindled 5% to $102,488 on Tuesday, 10:34 UTC, after reaching a new all-time high of $109,588 the previous day. Its daily trading volume notably plunged 3% to $105 billion, showing a decrease in market activity.
Santiment data indicates that BTC prices quickly corrected, as social media showed major greed and Fear Of Missing Out (FOMO) among the traders in Bitcoin after President Donald Trump’s inauguration.
📈📉 Bitcoin's new all-time high of $109.3K was established in Monday's early hours before Trump's inauguration. Prices quickly corrected, though, as social media showed major greed and FOMO. This chart shows mentions on X, Reddit, Telegram, 4Chan, and Farcaster for:
🟥 Bitcoin… pic.twitter.com/zfgC0P3QUx
— Santiment (@santimentfeed) January 21, 2025
Historically, prices move in the opposite direction of the crowd’s expectation, particularly in the short term. Being a contrarian continues to be a profitable way to swing trade, and an easy way to do so is to look at mentions of lower prices, current prices, and higher prices.
In BTC’s case, the mentions of higher prices by the crowd on Monday signaled selling signals. A similar move occurred in mid-December when the crowd mentioned higher prices which led to a short-term fall in Bitcoin prices.
BTC Statistical Data
Based on CoinmarketCap data:
- BTC price now – $102,488
- Trading volume (24h) – $105.81 billion
- Market cap – $2.03 trillion
- Total supply – 19.81 million
- Circulating supply – 19.81 million
- BTC ranking – #1
Bitcoin Price Dwindles as Trump’s Inauguration Speech Ignored BTC
The Bitcoin price reached a new all-time high (ATH) of $109,588 on Monday, hours before Donald Trump’s inauguration. However, BTC quickly slipped 5% from its ATH after the event, closing at $102K.
Trump’s inauguration speech fueled the wobble in the pioneering cryptocurrency, which ignored references to crypto policy. According to Coinglass data, BTC liquidations totaled $253.21 million in the past 24 hours, and the largest single liquidation order was placed on Binance – BTCUSDT, valued at $12.54 million.
A zoomed outlook at the technical analysis shows that the bulls still have control of the market. The support levels at $98,301 and $75,273, coinciding with the 50-day and 200-day SMAs, tilt the odds toward the buyers.
The RSI has wobbled currently at 58.95; however, it is still above the 50-mean level. If the Bulls initiate a buyback campaign at this level, the RSI could soar to the 70-overbought zone. On the other hand, if the market-wide sell-off continues, the RSI may drop below the 50-mean level.
Can Bitcoin Price Reach the $110K Mark?
A closer look at the 1-day chart analysis shows that the bulls still have the reins, which might push the BTC price to the upside. Moreover, if the support levels hold, the BTC price could rally to the $106,151 mark very soon. The gains could extrapolate to a new record high at $110K in a highly bullish case.
On the downside, if the market-wide sell-off soars, the minor support at the $99,693 level will be in line to absorb the selling pressure. Increased selling pressure will cause the Bitcoin price to dwindle to $92,728.
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Emmaculate Araka
Emmaculate Araka is a cryptocurrency writer with published works on Crypto2Community and other news sources. She is believer in the transformative power of crypto and the blockchain industry, conducting on-chain analysis, breaking down market-triggering events, and helping traders and investors benefit from expert technical price analysis. Emmaculate finds gratification in diving deep into the crypto space, earning herself significant knowledge and experience. She holds a Bsc. in Information Science, and outside work, Emmaculate loves reading novels and watching documentaries.
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