Summary:
Bitcoin reaches a record high of $109,333 ahead of Trump's inauguration.
Trump acknowledges Bitcoin's performance in a Sunday speech.
BTC reversed earlier losses from nearly $100,000.
Investor optimism fueled by Trump's campaign promises for cryptocurrency.
Year-end targets for Bitcoin range from $185,000 to $250,000.
Bitcoin Surges to $109K Ahead of Trump’s Inauguration
Bitcoin (BTC) has zoomed to a record level above $109,000 during the Asian trading hours on Monday, just ahead of Republican Donald Trump's scheduled inauguration later in the day. The largest cryptocurrency reached a peak of $109,333 on Binance.
In a Sunday speech, Trump acknowledged the asset's remarkable performance, linking it to gains in the broader U.S. stock market. He stated, "Since the election, the stock market has surged and small business optimism has soared a record 41 points to a 39-year high. Bitcoin has shattered one record high after another."
Earlier in the day, BTC reversed losses after dropping to nearly $100,000, having previously peaked at over $102,000 on Sunday. This decline was attributed to first lady Melania Trump issuing a memecoin, which drew liquidity away from major assets.
Trump's vocal support for cryptocurrencies during his campaign, including promises to make the U.S. the 'crypto capital of the planet' and to create a 'strategic national bitcoin reserve,' has fueled investor optimism.
Ben El-Baz, Managing Director of HashKey Global, remarked, "Bitcoin reached $108K while other cryptocurrencies have rapidly pumped on the eve of the U.S. presidential inauguration, with hopes that new policies and regulators will send the price of BTC much further this year as the U.S. economy continues to show strength in the long term."
The momentum has been further enhanced by the launch of the TRUMP and MELANIA memecoins, attracting more retail users and raising hopes that Trump will prioritize and reaffirm his commitment to the crypto industry.
Jeff Mei, COO at BTSE, noted, "Designating crypto as a national priority and launching TRUMP coin over the past few days have been strong, positive signals. As the main bellwether for the industry, Bitcoin's surge was expected and is likely to continue through the week."
Year-end bitcoin targets range from $185,000 to as high as $250,000, as previously reported by CoinDesk. Meanwhile, Bitcoin dominance has started to trend higher, now approaching 60%, the highest level since December 20. The spread between Bitcoin and Ether (ETH) continues to widen, with a $1.75 trillion market cap differential — the largest difference ever recorded.
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