BTC News: Bitcoin Reaches $110K Milestone in Historic Rally Before Trump’s Inauguration

• Bitcoin reached a new all-time high of $110,000 ahead of Trump taking the U.S. Presidency.

• Analysts caution traders about market volatility, as liquidity challenges and resistance at $110,000 could lead to price corrections.

Bitcoin has continued to break records, and on 20th January, it crossed the $110,000 mark for the first time ever. The cryptocurrency rose by 3.09% and was trading at $108,000 after the rally. This performance has driven the total crypto market capitalization to $2.14 trillion.

The spike coincides with market expectations for President-elect Donald Trump’s inauguration speech. Marker rumors indicate that Trump may be planning to consider the establishment of a Bitcoin strategic reserve. There is no official word on it, but the rumors have added more fuel to the fire and increased buying pressure.

Factors that are Influencing Bitcoin’s Growth

Analyzing the market trends, several factors can explain Bitcoin’s growth. Polymarket data reveals that the chances of a Bitcoin reserve approval have increased significantly from 37% to 59% in mere minutes.

Republican Senator Cynthia Lummis from Wyoming introduced the BITCOIN Act to the U.S. Senate on July 31st. This bill will seek to have the U.S. Treasury purchase one million Bitcoins, approximately five percent of the global supply. According to Lummis, the Treasury should make use of the current funds to buy Bitcoin in relation to the current gold holdings.

The inauguration also comes at a time when investor sentiment is changing. Numerous traders allegedly transferred their earnings from TRUMP coin, a memecoin, to Bitcoin, considering the latter to be more reliable. This strategic rotation of capital reinforces the notion of Bitcoin as an asset to hold in the long run during such volatile markets.

Also, the successive higher highs and higher lows in the daily and weekly charts of Bitcoin proved the consistent upward pressure. Ethereum (ETH) and Ripple (XRP) also appreciated, increasing by 4.88% and 9.66%, respectively, which also supports the general bullish trend of the market.

However, some altcoins have been on the rise in the past few days, even though Bitcoin experienced a price surge. Some of the tokens that rose by 68% on the last day include MELANIA, Fartcoin, and Aave, while others, like Fartcoin and Aave, rose by 35% and 18%, respectively. These gains can be attributed to the general market euphoria after Trump’s meme coin was launched on Solana.

Market Volatility and Trader Sentiment

According to TradingView, Bitcoin reached its highest point at $109,356 on Bitstamp. Although the market indicated strength, analysts have some concerns about future risks. Some liquidation issues on exchanges such as Binance may indicate a price reversal, especially to late investors who may be holding positions at the highest price. High liquidation volumes evidence this volatility. More than $1bn in longs have been liquidated in the last day, underlining the perils of trading during this bullish phase.

According to the crypto influencer Skew, the supply barriers are still substantial at the current levels, and strong buying pressure is needed to drive the prices higher. However, other traders welcomed the breakout of Bitcoin from the $970 – $1,030 range it had been trading in for a month now as a positive sign that the market was strong.

Trump’s inauguration day could become a turning point for the cryptocurrency market. If pro-crypto policies are to be implemented, Bitcoin’s upward trend may be further solidified.