itcoin is reaching a very critical level at around $99,000 as traders are awaiting any changes in price regarding the upcoming presidential inauguration of President Trump on January 20th, 2025. Anticipation of this political event is bringing waves of volatility within the crypto market, and huge investors are following the price to catch uptrends.
Bitcoin Price and Political Determinants.
With the clock ticking down to Trump's inauguration, many within the market are aware of how political events have impacted Bitcoin's price over the years. Trump had previously pushed BTC to the $100k mark due to his impact in late 2024; however, the overall economic condition rapidly took over.
Exchange reserves for Bitcoin only saw a modestly sized move, rallying 1.7% over the past week, before subsequently falling to a four-year low of 2.30 million BTC, meaning lots of traders are pulling their holdings out of the exchanges because of this uncertainty in the market. That depicts an environment where investors are afraid of a price drop.
Market Trends Preceding the Inauguration.
Once Bitcoin stabilized at the $98,000 level, trading volumes dropped by 6% in the wider market. With such low activity, the market experienced strong exchange inflows, with recent reports showing $900+ million in ETF inflows. This inflow has continued to build up a bullish sentiment that many believe could possibly break out over the $100K point in the next couple of days.
Analysts believe that if this level of support can be set above $100K, the price could rally toward all-time highs. Some experts are now predicting that Bitcoin will be worth between $250,000-$300,000 in 2025, according to a recent Yahoo Finance report.
Retail Investor Sentiment
Retail investors, despite making up 88% of Bitcoin holders, still represent only a small portion of the cryptocurrency's price. With that, many fear that a failure to keep above the key psychological level at $100K could spur a massive sell-out. Analysts have noted that only strong retail investor accumulation could keep it trending upwards in price.
With the inauguration date getting closer, what the market response will be when Trump takes office could possibly give a big steer to the direction that Bitcoin takes. If his return to the political arena brings about positive sentiment, he can inspire retail investors to encourage very aggressive accumulation.
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