Bitcoin (BTC)
price surged to an unprecedented, new all-time high (ATH) of $109,350 early
Monday, January 20, 2025, as cryptocurrency markets rallied hours before Donald
Trump’s scheduled inauguration as the 47th President of the United States.
In the
background, there was a sharp rise in the new TRUMP crypto token, which surged
over the past weekend, along with the broader digital asset market. Let’s
explore why Bitcoin’s price is going up.
The world’s
largest cryptocurrency jumped more than 6% in early Asian trading on Monday,
surpassing its previous record of $108,000 set in December 2024. The digital
asset has maintained strong momentum, trading at $107,518 at press time,
earlier reaching a new ATH of $109,350 at Binance.
Bitcoin price reaches new ATH. Source: Tradingview.com
The latest
rally comes amid growing anticipation of crypto-friendly
policies under Trump’s incoming administration. The president-elect has
repeatedly signaled support for digital assets during his campaign, including
proposals for establishing a
strategic national Bitcoin reserve.
Tom Trowbridge, Co-Founder & CEO of Fluence
“Turning the pages with the new administration, we’re seeing a stark shift from outright hostility to full support,” Tom Trowbridge, Co-Founder & CEO of Fluence, commented for Finance Magnates. “The appointment of David Sacks as the ‘crypto czar’ clearly signals a pro-crypto stance. The Crypto Reserve has the potential to set off a race among other countries to accumulate Bitcoin and other assets, and the US’s crypto-friendly policies will likely drive pro-crypto legislation globally.”
As a result
of these gains, the broader cryptocurrency market is also on the rise. Ethereum
has added 3.5% in 24 hours, trading at nearly $3,400, while XRP is up 2%,
reaching $3.20. Leading the gains is Chainlink, which has surged 15%, climbing
to $26.50.
Bitcoin Technical
Analysis, BTC in Price Discovery Mode
Bitcoin tested
a new record price, but the previous ATH from mid-December still seems to act
as significant resistance. This is evident as the price, after reaching
historical highs, has pulled back below the psychological barrier of $108,000.
However,
bulls can still rely on several key support levels on the BTC chart. Here
are the major supports:
- $104,000 – Highs from
early December - $102,400 – Local highs from the start of 2025
- $99,500 – A level marked by mid-November’s local
highs, close to the psychological threshold of $100,000 - $92,300 – A major support strengthened by the 38.2%
Fibonacci retracement and the lower boundary of a consolidation zone lasting
over two months
Bitcoin price technical analysis. Source: Tradingview.com
In my view,
only a drop below this final support level (and the $90,000 mark) could signal
a deeper correction for Bitcoin’s price. Any movements above these levels seem
to me like a temporary breather and an opportunity to buy at slightly lower
prices.
TRUMP Token Shakes Up the
Cryptocurrency Market
Just before
the presidential inauguration, the
“OFFICIAL TRUMP” token, ticker TRUMP, is also making waves,
reaching levels above $70 on Sunday. Trump announced the token’s launch through
his official Truth Social and X accounts, assuring skeptics that the coin is
indeed tied to him. Accompanied by the statement “WINNING,” the
announcement described the token as a celebration of his ideals and leadership.
For a brief
period, TRUMP was among the top ten largest cryptocurrencies by market
capitalization. However, following a recent correction and a price drop to $58,
it now ranks 18th, with a market cap of just under $11.7 billion and an
exceptionally high trading volume of $52 billion.
TRUMP token price skyrocketed to more than $70. Source: CoinMarketCap.com
The correction was partly triggered by the debut of a competing token created by the future president’s wife, Melania Trump, with the ticker MELANIA.
“Besides the newly friendly crypto regulatory environment, the administration’s cost-conscious and tech-friendly initiatives should also help drive the adoption of crypto projects, especially in decentralized cloud and other DePIN sectors, which have the potential to save the government substantial funds,” Trowbridge added.
Bitcoin Price Prediction
2025: How Will Trump Influence the Market?
Trump, who
is set to take the oath of office at 4 PM CET, acknowledged Bitcoin’s
performance during a Sunday address, connecting it to broader market optimism.
His administration’s pro-crypto stance has contributed to
ambitious year-end price targets ranging from $185,000 to $250,000.
|
Expert/Institution |
2025 Price Target |
Key Reasoning |
|
Tim Draper |
$250,000 |
Merchant adoption and impact of 2024 halving event |
|
Standard |
$200,000 |
Institutional inflows and regulatory clarity through spot ETFs |
|
Tom Lee |
$250,000 |
Bitcoin supply shortage on exchanges |
|
Arthur Hayes |
$175,000 |
Traditional |
It appears
that these are not the most optimistic projections for Bitcoin. Late last year,
I tried to answer the question: “Will
Bitcoin hit $1 million?” Jeff Park, Head of Alpha Strategies at Bitwise
Asset Management, noted that this could happen if the U.S. government adopted
Bitcoin as part of its reserve strategy. However, he currently estimates the
likelihood of this scenario at just 10%.
Arthur
Hayes, the founder of cryptocurrency exchange BitMEX, has
also spoken about the potential for Bitcoin to reach $1 million. During a
recent interview on Tom Bilyeu’s show, Hayes shared his insights on the state
of the cryptocurrency market.
“It’s the bull market. When the music is playing you gotta $DANCE.” ~ Arthur Hayes x Tom Bilyeu#crypto #dance #memecoin #solana #bullrun pic.twitter.com/g9MdkEtIZe
— DANCE MEMECOIN 🤩 (@dancememecoin) January 7, 2025
He
suggested that Bitcoin could gradually move toward seven-figure valuations,
potentially achieving this milestone within the next five years.
Bitcoin Price, FAQ
Why is Bitcoin surging right
now?
Bitcoin’s price has surged to a new all-time high of
$109,350 due to market optimism surrounding the inauguration of Donald Trump as
the 47th U.S. President. Anticipation of pro-crypto policies under his
administration, such as a potential strategic national Bitcoin reserve, has
driven significant market enthusiasm.
Why is Bitcoin predicted to go
up?
Bitcoin is predicted to rise further due to several key factors.
Institutional adoption continues to grow, with major financial institutions
like Standard Chartered and analysts such as Tim Draper highlighting increased
interest. Additionally, the 2024 halving event has led to a reduction in
Bitcoin supply on exchanges, creating supply constraints that support price
increases.
How much is $100 Bitcoin worth
right now?
As of January 20, 2025, $100
worth of Bitcoin would be equivalent to approximately 0.000913 BTC, given the
current price of $109,350 per Bitcoin.
What is the expected price of
Bitcoin in 2025?
The expected price of Bitcoin in 2025 varies based on expert projections,
ranging from $175,000 to $250,000. Analysts like Tim Draper and Tom Lee predict
Bitcoin could reach $250,000, citing factors such as merchant adoption, the
impact of the 2024 halving event, and a supply shortage on exchanges.
Standard Chartered forecasts a price of $200,000, driven by institutional
inflows and regulatory clarity through spot ETFs. Meanwhile, Arthur Hayes
projects a more conservative target of $175,000, highlighting traditional
finance capital inflows as a key factor.
Bitcoin (BTC)
price surged to an unprecedented, new all-time high (ATH) of $109,350 early
Monday, January 20, 2025, as cryptocurrency markets rallied hours before Donald
Trump’s scheduled inauguration as the 47th President of the United States.
In the
background, there was a sharp rise in the new TRUMP crypto token, which surged
over the past weekend, along with the broader digital asset market. Let’s
explore why Bitcoin’s price is going up.
The world’s
largest cryptocurrency jumped more than 6% in early Asian trading on Monday,
surpassing its previous record of $108,000 set in December 2024. The digital
asset has maintained strong momentum, trading at $107,518 at press time,
earlier reaching a new ATH of $109,350 at Binance.
Bitcoin price reaches new ATH. Source: Tradingview.com
The latest
rally comes amid growing anticipation of crypto-friendly
policies under Trump’s incoming administration. The president-elect has
repeatedly signaled support for digital assets during his campaign, including
proposals for establishing a
strategic national Bitcoin reserve.
Tom Trowbridge, Co-Founder & CEO of Fluence
“Turning the pages with the new administration, we’re seeing a stark shift from outright hostility to full support,” Tom Trowbridge, Co-Founder & CEO of Fluence, commented for Finance Magnates. “The appointment of David Sacks as the ‘crypto czar’ clearly signals a pro-crypto stance. The Crypto Reserve has the potential to set off a race among other countries to accumulate Bitcoin and other assets, and the US’s crypto-friendly policies will likely drive pro-crypto legislation globally.”
As a result
of these gains, the broader cryptocurrency market is also on the rise. Ethereum
has added 3.5% in 24 hours, trading at nearly $3,400, while XRP is up 2%,
reaching $3.20. Leading the gains is Chainlink, which has surged 15%, climbing
to $26.50.
Bitcoin Technical
Analysis, BTC in Price Discovery Mode
Bitcoin tested
a new record price, but the previous ATH from mid-December still seems to act
as significant resistance. This is evident as the price, after reaching
historical highs, has pulled back below the psychological barrier of $108,000.
However,
bulls can still rely on several key support levels on the BTC chart. Here
are the major supports:
- $104,000 – Highs from
early December - $102,400 – Local highs from the start of 2025
- $99,500 – A level marked by mid-November’s local
highs, close to the psychological threshold of $100,000 - $92,300 – A major support strengthened by the 38.2%
Fibonacci retracement and the lower boundary of a consolidation zone lasting
over two months
Bitcoin price technical analysis. Source: Tradingview.com
In my view,
only a drop below this final support level (and the $90,000 mark) could signal
a deeper correction for Bitcoin’s price. Any movements above these levels seem
to me like a temporary breather and an opportunity to buy at slightly lower
prices.
TRUMP Token Shakes Up the
Cryptocurrency Market
Just before
the presidential inauguration, the
“OFFICIAL TRUMP” token, ticker TRUMP, is also making waves,
reaching levels above $70 on Sunday. Trump announced the token’s launch through
his official Truth Social and X accounts, assuring skeptics that the coin is
indeed tied to him. Accompanied by the statement “WINNING,” the
announcement described the token as a celebration of his ideals and leadership.
For a brief
period, TRUMP was among the top ten largest cryptocurrencies by market
capitalization. However, following a recent correction and a price drop to $58,
it now ranks 18th, with a market cap of just under $11.7 billion and an
exceptionally high trading volume of $52 billion.
TRUMP token price skyrocketed to more than $70. Source: CoinMarketCap.com
The correction was partly triggered by the debut of a competing token created by the future president’s wife, Melania Trump, with the ticker MELANIA.
“Besides the newly friendly crypto regulatory environment, the administration’s cost-conscious and tech-friendly initiatives should also help drive the adoption of crypto projects, especially in decentralized cloud and other DePIN sectors, which have the potential to save the government substantial funds,” Trowbridge added.
Bitcoin Price Prediction
2025: How Will Trump Influence the Market?
Trump, who
is set to take the oath of office at 4 PM CET, acknowledged Bitcoin’s
performance during a Sunday address, connecting it to broader market optimism.
His administration’s pro-crypto stance has contributed to
ambitious year-end price targets ranging from $185,000 to $250,000.
|
Expert/Institution |
2025 Price Target |
Key Reasoning |
|
Tim Draper |
$250,000 |
Merchant adoption and impact of 2024 halving event |
|
Standard |
$200,000 |
Institutional inflows and regulatory clarity through spot ETFs |
|
Tom Lee |
$250,000 |
Bitcoin supply shortage on exchanges |
|
Arthur Hayes |
$175,000 |
Traditional |
It appears
that these are not the most optimistic projections for Bitcoin. Late last year,
I tried to answer the question: “Will
Bitcoin hit $1 million?” Jeff Park, Head of Alpha Strategies at Bitwise
Asset Management, noted that this could happen if the U.S. government adopted
Bitcoin as part of its reserve strategy. However, he currently estimates the
likelihood of this scenario at just 10%.
Arthur
Hayes, the founder of cryptocurrency exchange BitMEX, has
also spoken about the potential for Bitcoin to reach $1 million. During a
recent interview on Tom Bilyeu’s show, Hayes shared his insights on the state
of the cryptocurrency market.
“It’s the bull market. When the music is playing you gotta $DANCE.” ~ Arthur Hayes x Tom Bilyeu#crypto #dance #memecoin #solana #bullrun pic.twitter.com/g9MdkEtIZe
— DANCE MEMECOIN 🤩 (@dancememecoin) January 7, 2025
He
suggested that Bitcoin could gradually move toward seven-figure valuations,
potentially achieving this milestone within the next five years.
Bitcoin Price, FAQ
Why is Bitcoin surging right
now?
Bitcoin’s price has surged to a new all-time high of
$109,350 due to market optimism surrounding the inauguration of Donald Trump as
the 47th U.S. President. Anticipation of pro-crypto policies under his
administration, such as a potential strategic national Bitcoin reserve, has
driven significant market enthusiasm.
Why is Bitcoin predicted to go
up?
Bitcoin is predicted to rise further due to several key factors.
Institutional adoption continues to grow, with major financial institutions
like Standard Chartered and analysts such as Tim Draper highlighting increased
interest. Additionally, the 2024 halving event has led to a reduction in
Bitcoin supply on exchanges, creating supply constraints that support price
increases.
How much is $100 Bitcoin worth
right now?
As of January 20, 2025, $100
worth of Bitcoin would be equivalent to approximately 0.000913 BTC, given the
current price of $109,350 per Bitcoin.
What is the expected price of
Bitcoin in 2025?
The expected price of Bitcoin in 2025 varies based on expert projections,
ranging from $175,000 to $250,000. Analysts like Tim Draper and Tom Lee predict
Bitcoin could reach $250,000, citing factors such as merchant adoption, the
impact of the 2024 halving event, and a supply shortage on exchanges.
Standard Chartered forecasts a price of $200,000, driven by institutional
inflows and regulatory clarity through spot ETFs. Meanwhile, Arthur Hayes
projects a more conservative target of $175,000, highlighting traditional
finance capital inflows as a key factor.
