Bitcoin rises to an all-time high and then crushes

Bitcoin price surged to an all-time high of $109,880 early on Monday but plummeted to $102,000 soon after. If the BTC price declines, support can be found at $88,890, while resistance may be encountered at the new all-time high of $108,880. 

Ethereum price also exhibited high volatility on Monday, rising to $3,450 and then paring the day’s gains falling back to $3,250. If Ethereum's price declines, it may encounter support near $3,000, while if it increases, resistance may be encountered near $3,520.

Bitcoin price registered a new all-time high of $109,880 on Monday ahead of Donald Trump’s inauguration. Trump’s proposed plans for building a Bitcoin strategic reserve have been boosting Bitcoin price. Donald Trump has openly declared his support of crypto markets, announcing that he will make the US ‘the crypto capital of the planet’. Growing expectations that the new government will adopt a pro-crypto regulatory and fiscal policy have been boosting crypto markets. 

Donald Trump’s Presidential inauguration at the US capitol attracted market attention on Monday. Trump was sworn in as the 47th president of the United States with the whole world anxiously expecting his inaugural address to the US nation. 

Trump was widely expected to impose new trade tariffs immediately after taking office. Trump, however, refrained from issuing tariffs on his first day in office, raising speculation that the tariffs will be more moderate than originally speculated. The absence of a tariff plan gave rise to a risk-on sentiment on Monday, boosting crypto markets.  

Cryptocurrency prices are also affected by central banks’ interest rates. The US Federal Reserve cut interest rates by 25 basis points at its latest meeting to a target range of 4.25% to 4.50%.  Indications that the Fed will follow a more hawkish approach than previously anticipated are putting pressure on crypto markets.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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