Bitcoin Hits $102K as Inauguration Hype Boosts BTC Momentum

• Bitcoin price has recorded a breakout from the $102,000 mark in push for new ATH.
• Macroeconomic and political sentiment in the U.S are fueling optimistic projections.

On Friday, the price of Bitcoin (BTC) hit the $105,000 mark, increasing by 8.4% on the weekly chart. The ongoing positive sentiment surrounding Bitcoin is largely fueled by hype around Donald Trump’s inauguration on January 20.

Bitcoin Continues in the Green

According to Market data, BTC trades at $105,758, inking a 3.9% increase in the last 24 hours. The trading volume rose 5.6% within the same time frame to $61.7 billion, increasing investors’ interest.

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A recent report from K33 Research highlighted that investors are becoming less interested in selling their BTC assets as they await Trump’s inauguration. They believed his resumption in the White House would fuel more rallies for the leading cryptocurrency. 

As mentioned in our report, Bitcoin rose toward the long-awaited $100,000 milestone following Trump’s election win in November. However, conservatism and caution took over, resulting in Bitcoin declining to below $95,000.

With Trump’s inauguration just a few days away, the market is back in the green zone. Besides Bitcoin, US stocks also rose sharply following the November elections. The K33 report explains that the S&P 500 index’s early post-election response in 2024 closely resembled that of 2016.

However, the index’s pattern diverged from 2016 following the December 18 Federal Reserve (Fed) meeting. In 2016, the S&P 500 stabilized at mid-December highs, followed by low volatility until the inauguration. Subsequently, the index experienced a year-long uptrend after Trump resumed office.

Analysts at K33 further pointed out that Trump often referenced the stock market during his first term in office. He used the indices to highlight economic growth associated with policies, trade deals, deregulations, and tax cuts. They emphasized that Trump will likely repeat this trend during his second term. 

Regarding BTC, the analysts have revised their stance on selling the asset during Trump’s inauguration. While the analysts expect short-term volatility, they are still optimistic about long-term bullish potentials for BTC.

Other Favorable Upsides for BTC

The US macroeconomic data released this week has offered support for Bitcoin’s price. According to the US Bureau of Labor Statistics, the Producer Price Index (PPI), which measures wholesale inflation, rose 0.2% in December. This reading is below the 0.3% expectations and the 0.4% November reading.

However, December’s US Consumer Price Index (CPI) data further supported Bitcoin price. The data showed that headline CPI increased year-to-date, aligning with investors. Specifically, the index increased by 2.9% in December, rising from 2.7% in the previous month. 

At the same time, core CPI inflation accelerated slower than expected. The market perceived this move as disinflationary, favoring risky assets like Bitcoin to close above $100,000.

Furthermore, the spot BTC Exchange-Traded Fund (ETF) market has also reinforced Bitcoin’s rising momentum. After days of persistent outflows, the spot BTC ETFs recorded two consecutive days of inflows on Wednesday and Thursday.

With the influence of adoption and changing market trends, experts believe Bitcoin could hit $300,000 by 2025, as noted in our earlier post.

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