Bitcoin hits new record high, surpassing $109,000, on the day of Trump's inauguration

Bitcoin reached a new all-time high of $109,299, marking a 2.68% increase from the previous close.

In the hours leading up to Trump's speech, the asset's value fluctuated between $105,000 and $109,000.

Trump's inauguration has garnered significant interest from investors in the cryptocurrency sector.

Today, all eyes in the crypto world will be on Trump. Whether the price breaks through $110,000 or experiences a sharp correction, testing the $100,000 level, depends on how the market interprets the speech of the 47th President of the United states.

On the eve of the inauguration, Bitcoin already experienced a brief correction when Trump and his wife Melania launched new memecoins – $TRUMP and $MELANIA – which quickly attracted attention and investments, despite criticism and potential conflicts of interest. This led to a short-term outflow of funds from Bitcoin, Ethereum, and other cryptocurrencies.

Since November 2024, when Trump won the presidential election, Bitcoin has risen by over 50%, surpassing the $100,000 mark for the first time, giving investors hope for a long-term upward trend. Expectations for a favourable regulatory environment for cryptocurrencies under Trump's leadership are further boosting positive market climate. Speculations about the creation of a strategic Bitcoin reserve within Trump's first 100 days in office also contribute to growing investor confidence and market optimism.

However, potential risks remain, linked to the inflationary effects of new policies and the impact of Federal Reserve decisions on cryptocurrency prices. Bitcoin continues to demonstrate significant volatility and serves as a key indicator of investor sentiment toward political changes in the United States. Whether the price continues its upward trajectory or experiences a sharp correction due to misplaced investor expectations remains to be seen.

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell assets. Investing in cryptocurrencies carries risks, and it is recommended to consult a licensed financial advisor before taking any action.