Bitcoin Nears All-Time High Ahead of Trump’s Inauguration and Positive US Inflation Data

Bitcoin’s price has resumed its bullish trend, nearing its all-time high of $108,200, fueled by the upcoming Trump inauguration and encouraging U.S. inflation data. The cryptocurrency reached a high of $105,847, its highest level since December 18, significantly surpassing this week’s low of $82,055.

Trump’s Crypto-Friendly Stance and Potential Regulatory Changes

Crypto investors are likely optimistic about the upcoming Trump inauguration and the potential regulatory changes that may follow. Trump has pledged to be a crypto-friendly president and aims to make the U.S. the crypto capital of the world. While the U.S. already mines the most cryptocurrency, critics often cite Bitcoin’s energy-intensive proof-of-work mining process as being at odds with energy conservation initiatives.

Trump’s Involvement in the Crypto Industry

Trump recently launched his own meme coin and runs World Liberty Financial, a crypto project that has raised millions of dollars, including from Justin Sun. His administration also plans to prioritize cryptocurrencies, which may lead to substantial inflows. All spot Bitcoin ETFs added $755 million and $626 million in inflows in the last two days, bringing the cumulative flows to $38 billion.

Potential Catalysts for Bitcoin’s Price Surge

The odds that Trump will create a strategic Bitcoin Reserve in the first 100 days of his administration have spiked to 42% from this year’s low of 20%. Another potential catalyst is the ongoing stablecoin inflows. Data shows that stablecoins have continued to flow into exchanges, which is notable since stablecoins are used to buy Bitcoin and other coins.

Bitcoin’s Strong Technicals

The weekly chart shows that Bitcoin price has done well this week, forming a bullish engulfing pattern, a popular positive sign. This pattern comprises a big bullish candlestick that covers a previous bearish candle completely. Bitcoin has also formed a bullish pennant pattern consisting of a long vertical line and a symmetrical triangle, which often leads to a strong breakout.

Bitcoin remains above the 50-week and 100-week moving averages and has moved much higher than $68,930, the upper side of the cup and handle pattern that formed between 2021 and November last year. Therefore, Bitcoin will likely have a strong breakout and move to its all-time high of $108,200.

Tips for investors:

  • Keep a close eye on Bitcoin’s price movement and technical indicators.
  • Consider the potential impact of Trump’s crypto-friendly stance and regulatory changes on the market.
  • Stay informed about stablecoin inflows and their effect on the cryptocurrency market.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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