Bitcoin Surges Back into the $105,000 Range as Donald Trump's Second-Term Inauguration Coincides with Cryptocurrency Market Momentum

The cryptocurrency market gained momentum on Saturday, coinciding with Donald Trump’s second-term inauguration, as Bitcoin surged back into the $105,000 range

Bitcoin price surged back into the $105,000 range on Saturday, briefly reaching $106,000, as the cryptocurrency market gained steam, coinciding with Donald Trump’s second-term inauguration.

The digital asset received strong signals of support from the former US president, with his administration reportedly considering a policy rate cut to stimulate the economy.

Moreover, the market value of the flagship cryptocurrency was $2.08 billion on Sunday, with a fully diluted price of $105,047, an increase of 1.86 percent.

The week started slowly for Bitcoin as it dropped below $90,000 amid concerns over US Federal Reserve policies. However, reports of the policy rate cut quickly reignited the positive momentum.

Traders capitalized on the historically strong demand for Bitcoin during periods of low interest rates, pushing the cryptocurrency’s price past $99,000 and then the $100,000 mark.

Investor excitement was further fueled by Trump's expected pro-crypto stance in his first week back in office. The crypto community has expressed optimism over Trump being president.

In a departure from previous rallies, this week's surge was notably boosted by large capital inflows into exchange-traded funds (ETFs) that focus on Bitcoin.

After earlier withdrawals, investors poured nearly $1.3 billion into these funds by midweek.