Bitcoin Hits New All-Time High But Trump Disappoints Market

BTC's fleeting rise to $109,588 turns into a steep drop following Trump's inaugural address

Bitcoin (BTC) price showed a slight increase of 0.95%, closing at $102,296 at the time of this report. However, the cryptocurrency, which hit a new all-time high of $109,588 on Monday, failed to maintain its bullish momentum. Investors' disappointment was palpable when the new US President Donald Trump failed to mention bitcoin and the cryptocurrency sector during his inaugural address.

Despite recent volatility, the price of bitcoin remains in an uptrend, trading above the 50-period moving average, located at USD 96,400 / Tradingview

Market reaction

During the early morning European session, bitcoin began to climb, driven by speculation about Trump's speech. Investors were on the lookout for any words that could support the growth of the crypto sector. However, the lack of mentions left many disappointed.

Despite this, the Trump family-linked firm World Liberty Financial (WLFI) announced significant cryptocurrency purchases in commemoration of the president’s inauguration. WLFI invested $47 million in Ethereum (ETH), $47 million in wrapped Bitcoin (wBTC), and smaller amounts in AAVE, LINK, Tron (TRX), and ENA. As coin prices fell, the Trump family fund made purchases.

BTC Withdrawals and Capital Flows

In anticipation of Trump’s announcements, investors massively withdrew BTC from centralized exchanges last week. According to data from Coinglass, the balance on major exchanges fell to 2.18 million BTC, indicating growing confidence in the leading cryptocurrency. In addition, the ETF sector saw significant capital inflow, with a positive net flow of $975.60 million last Friday. That amount added to other strong positive inflows the previous two days.

The Fall and Its Aftermath

Investor disappointment resulted in a wave of liquidations, reaching USD 823.61 million in the crypto sector, with long positions suffering losses of USD 505.6 million in the past 24 hours. Volatility was high, with short positions also facing initial losses of USD 267.56 million.

The launch of the TRUMP and MELANIA memecoins also disrupted the market, undermining the credibility of the cryptocurrency due to high speculation. Despite hitting a new all-time high, bitcoin fell back sharply. BTC left a candle with a small body and a long upper wick, reflecting strong selling pressure.

Despite the recent volatility, the price of bitcoin remains in an uptrend, trading above the 50-period moving average, located at USD 96,400. Investors continue to watch President Trump's moves in anticipation of possible executive orders that could impact the sector.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Invest at your own risk.