JUST (jst) 
Bitcoin Surpasses $100,000 as Market Sentiment Shifts with Trump’s Inauguration
Bitcoin has once again breached the $100,000 mark, with the cryptocurrency trading at $101,700 as of January 7. This comes after weeks of stability in the $92,000 to $98,000 range. The surge is attributed to a combination of factors, including a staggering notional open interest of $1.56 billion in $120,000 call options as of January 7.
A call option gives the holder the right to buy Bitcoin at a specific price later, essentially a bet that prices will go higher. The optimism surrounding Bitcoin is largely fueled by speculation that President-elect Donald Trump’s administration might usher in a more crypto-friendly era.
What Trump’s Inauguration Could Mean for Crypto
As Trump prepares to take office, the digital asset industry is anticipating changes in how crypto is governed in the U.S. The resignation of SEC Chair Gary Gensler, known for his tough stance on digital assets, could lead to a dramatic policy shift. Gensler’s departure might pave the way for a more crypto-friendly approach, particularly with the potential appointment of former SEC Commissioner Paul Atkins, who has expressed support for digital assets.
Congressman French Hill has indicated that Republican leadership plans to prioritize a comprehensive regulatory framework for crypto. This effort builds on the FIT 21 bill passed by the House in 2024, which aimed to end the tug-of-war between the SEC and the Commodity Futures Trading Commission over who gets to regulate crypto.
While FIT 21 was hailed as a landmark moment, it didn’t come without controversy. Some industry insiders felt the bill was rushed and overly restrictive, particularly in its treatment of decentralized finance. Republican leaders have hinted that they may scrap FIT 21 and start fresh, with a focus on innovation while addressing concerns raised by the DeFi community.
Macroeconomic Winds: What This Means for Bitcoin
A string of crucial macroeconomic indicators will paint a picture of the U.S. economy’s health, and for the crypto industry, the implications are worth dissecting. The ADP National Employment Report, weekly jobless claims report, and US Consumer Sentiment Index will provide clues about the economy’s performance.
Strong employment data usually lifts market confidence and increases interest in riskier assets like Bitcoin. On the other hand, weaker data might introduce caution, pulling investors toward safer bets. The Federal Reserve’s position will become clearer later this month when the Federal Open Market Committee releases its meeting minutes.
Crypto Industry’s Rising Hopes
The crypto market has always thrived on narratives, and the Trump administration’s incoming policies are shaping up to be a compelling one. Ripple’s CEO, Brad Garlinghouse, recently tweeted about this shift, noting how the “Trump effect” has revitalized confidence within the U.S. crypto sector.
2025 is here and the Trump bull market is real. For Ripple, this is even more personal after Gensler’s SEC effectively froze our business opportunities here at home for years. The optimism is obvious and very deserved.
Ripple, which spent years resolving regulatory challenges under Gary Gensler’s SEC, has already experienced a sea change. Garlinghouse shared that 75% of Ripple’s open roles are now U.S.-based, a dramatic reversal from recent years when most hires were abroad.
Where Could Bitcoin Go Next?
Crypto analyst Michaël van de Poppe pointed to the Rainbow Chart, a long-term indicator that categorizes Bitcoin’s price into various zones. At present levels, Bitcoin remains in what he would call a buy zone — a signal that the market hasn’t yet reached the kind of euphoria typically seen in previous cycles.
Van de Poppe attributes this to a kind of market PTSD, where scars from prior crashes have tempered bullish sentiment. However, he argues that this pessimism may be misplaced, noting, “People literally don’t expect how high and extreme this cycle is going to be.”
According to the Rainbow Chart, reaching even the lower bounds of “red zones” — areas historically associated with market peaks—would require Bitcoin to surpass $250K, with some stages hitting $375K or higher as time progresses.
Stay informed and up-to-date with the latest news on Global Crypto News. For investors, diversifying and keeping a close eye on macroeconomic signals will be essential as this exciting cycle unfolds. Always remember the golden rule: never invest more than you can afford to lose.
