Trump Inauguration Pushes Bitcoin Above $100K, But Market Could Correct

• Bitcoin Surpasses $100K on Trump's Pro-Crypto Expectations
• Analysts warn of possible correction after presidential inauguration
• US regulation and monetary policy will influence the crypto market

Donald Trump will take office as president of the United States in the coming days, and the financial markets are already moving in anticipation of his policies. The cryptocurrency sector, in particular, has shown forte optimism, driven by statements from the president-elect indicating a more favorable stance towards the industry. Bitcoin surpassed the $100 mark, reflecting expectations that the new administration will adopt more friendly regulatory measures. In addition, other cryptocurrencies, such as XRP and Solana, recorded significant gains, consolidating a bullish moment for the market.

At the time of publication, the price of Bitcoin was quoted at US$104.840 with a drop of 0.5% in the last 24 hours.

Optimism surrounding a government doing more The pro-crypto movement has been a major driver of this movement. Trump has already signaled his intention to create a cryptocurrency advisory board and review regulations that currently make it difficult for cryptocurrency companies to operate in the United States. The prospect of a more innovation-friendly environment has attracted institutional investors, increasing the interest of large funds and corporations in crypto assets. Many analysts predict that if these measures are implemented as expected, Bitcoin could reach a new all-time high by 2025.

However, despite the euphoria, some experts warn of the risk of a market correction soon after Trump’s inauguration. The phenomenon known as “selling the news” occurs when investors take profits after a widely anticipated event, which can result in momentary price drops. In addition, the inherent volatility of the crypto sector remains a characteristic to be considered, making the scenario still uncertain in the short term. Even with the prevailing optimism, caution remains a prudent approach for those who want to position themselves in the market.

Another factor that could influence the performance of cryptocurrencies is monetary policy in the United States. The Federal Reserve has indicated that it may keep interest rates high for longer, which could affect investors’ appetite for risky assets. Higher interest rates generally reduce liquidity in financial markets, impacting both stocks and cryptocurrencies. Therefore, despite the enthusiasm for Trump, investors will also be paying close attention to the Fed’s decisions in the coming months, as these policies will play a crucial role in the trajectory of Bitcoin and other digital assets.

International politics also plays an important role in this context. Trump’s stance on China and the possibility of new trade disputes could have repercussions on the global financial market, indirectly affecting the cryptocurrency sector. If tensions between the world’s two largest economies increase, volatility could intensify, leading investors to seek safer assets. However, if the government manages to establish a more stable environment for the sector, the United States could consolidate its position as one of the main hubs for cryptocurrency companies and investors.

Regardless of short-term fluctuations, the long-term trend for the crypto market remains positive. Crypto adoption continues to grow, both among institutional and retail investors, and new, well-structured regulations could accelerate this expansion. Large companies are already showing renewed interest in the sector, and the potential approval of crypto-based ETFs in the United States could further boost this trajectory. For investors, this moment requires a balanced approach, taking into account both the opportunities and risks involved in the government transition and its implications for the market.