Bitcoin Price Skyrockets to New All-Time High Above $109K Ahead of Trump’s Inauguration

Highlights:

• Bitcoin price surpasses $109,000 before Trump’s inauguration, with dominance nearing 60%.
• Polymarket data reveals that Bitcoin reserve approval chances surge amid market volatility.
• Analyst Skew warns of market reversal as $1 billion in long positions unwind.

Bitcoin (BTC) price hit a new milestone on January 20, surpassing $109,000. This broke its previous high of $108,000 set on December 17 last year. Data from TradingView shows BTC reached $109,036 at 6:55 am UTC before quickly falling below $108,000. The recent peak came just hours before Donald Trump’s inauguration as the 47th U.S. president at 4:00 pm UTC.

Bitcoin Price Surge Amid Trump’s Influence on Crypto Market

At the time of writing, Bitcoin was trading at $107,875 at the time of writing, marking a 3% increase in the past 24 hours, as per CoinGecko data. Trump’s presidency has significantly influenced crypto markets, with his November 6 victory sparking a rally that pushed Bitcoin price past $100,000 for the first time in early December last year. The crypto community’s optimism about Trump’s presidency stems from his bold crypto-related plans, including a potential Bitcoin reserve and expected deregulation.

Following widespread volatility in crypto markets, the return to price discovery boosted daily gains. The weekly close slipped below $100,000 amid confusion and suspicious moves tied to the controversial TRUMP memecoin linked to incoming Donald Trump. Trump’s inauguration fueled further instability. Pro-crypto policy announcements and new all-time highs were eagerly awaited.

Bitcoin Reserve Approval Chances Surge as Dominance Reaches 60%

Polymarket data reveals that the chances of a strategic Bitcoin reserve approval surged from 37% to 60% in just minutes. Moreover, Bitcoin dominance has begun to rise, nearing 60%, the highest since December 20. The gap between Bitcoin and Ethereum (ETH) continues to expand, with a market cap difference of $1.75 trillion—the largest ever seen.

Trump mentioned the asset’s strong performance in a Sunday speech, as well as gains in the U.S. stock market. “Since the election, the stock market has surged and small business optimism has soared a record 41 points to a 39-year high. Bitcoin has shattered one record high after another,” Trump said. Bitcoin price recovered from earlier losses, which saw it drop to nearly $100,000 from over $102,000 on Sunday. 

Analyst Warns of Market Reversal

Popular trader Skew shared a cautious outlook, stating, “Price testing supply here.” He suggested this could be an attempt to front-run upcoming events and generate exit liquidity. A chart accompanying the analysis highlighted liquidity conditions on Binance. Skew warned that late buyers, driven by new highs, could find themselves “stuck” as the market reverses. Liquidation data showed signs of strain. Nearly $1 billion in crypto-long positions unwound within 24 hours.

Skew pointed out that a large supply is creating a barrier for bulls at $110,000. In a follow-up update, he added, “$110K supply remains with added ask liquidity around $109K.”

$BTC
lmao that was quick

Price testing supply here

potentially front running tomorrow to create exit liquidity https://t.co/6xAtVdkiGA pic.twitter.com/5lTUhKcrwN

— Skew Δ (@52kskew) January 20, 2025

Other market participants shared the view that Bitcoin price might be influenced by undisclosed information. This could involve the Trump administration’s promise to create a strategic reserve using both BTC and select altcoins.