- Bitcoin spot flows remained positive even after the Trump inauguration.
- At the same time, MicroStrategy made another large Bitcoin purchase at over $100,000.
Bitcoin [BTC] demand this week may offer a glimpse of what to expect in the rest of 2025.
Many might not realize this, but President Trump’s inauguration might be one of the most significant developments for the crypto market in history.
For the first time in history, the U.S. has a pro-crypto president, and things are looking rather brighter for the crypto market. Reports of Gary Gensler’s resignation as the SEC chair were also received positively.
Even more interesting is that the market responded positively to Trump’s inauguration. Bitcoin managed to rally to a new ATH during the same day, and this spoke volumes about the state of demand.
Institutional buyers were particularly hyped, with spot ETF flows soaring over $1 billion on the 17th of January — the first time that ETF inflows crossed above $1 billion so far this year.
Spot ETF inflows amounted to $803.6 million the day after Trump’s inauguration. This was a clear sign that investors were optimistic about the new administration.
Why the Bitcoin optimism?
Trump was vocal about his support for crypto during his campaign and ever since his election win. However, nothing proved this more than launching his own official TRUMP memecoin just three days before the inauguration.
Trump wants the U.S. to be number one in terms of adopting cryptocurrencies and blockchain technology. To the extent that he believes that Bitcoin could help offset the runaway U.S. sovereign debt.
Analysts are increasingly viewing Bitcoin as a safe haven against the looming global debt crisis.
This could possibly be the reason why the Trump administration is pushing towards embracing BTC as a reserve asset.
The new administration is expected to streamline regulations around crypto, and the expectations are that it will be soft or favorable crypto laws.
These developments are expected to pave the way for more adoption, especially on the institutional side of things. This means Bitcoin demand in 2025 could potentially rival that of 2024 as sentiment becomes more bullish.
MicroStrategy was at the forefront of Bitcoin demand in 2024. Interestingly, the same company just announced an 11,000 BTC purchase at $101,191 per coin.
Read Bitcoin’s [BTC] Price Prediction 2025–2026
The new purchase aligns with the recent institutional demand observed courtesy of spot Bitcoin ETF flows.
While this does not necessarily shield Bitcoin from the potential for unexpected downside, it highlights the prevailing sentiment on account of the recent developments.
Source: https://ambcrypto.com/what-bitcoins-demand-in-the-last-7-days-says-about-its-2025-outlook/