The Crypto World Is Buzzing as President-elect Donald Trump's Inauguration Nears

Cryptocurrency markets are abuzz ahead of President-elect Donald Trump's inauguration on Wednesday. Bitcoin is holding above the key psychological level of $100,000, while altcoins like solana (SOL), cardano (ADA), chainlink (LINK), XRP and litecoin (LTC) are rallying sharply.

This comes amid reports that Trump could announce cryptocurrency as a policy priority during his first days in office. According to several people familiar with the matter, Trump's team has been discussing a potential strategic bitcoin reserve and talking points on crypto regulation.

Meanwhile, on-chain data from Arkham Intelligence shows that a blockchain address, which is linked to Trump's World Liberty Finance (WLF) project, snapped up nearly $10 million of ether (ETH) this week.

Also, keep an eye on layer-1 blockchain Near Protocol's NEAR token. Its supply dynamics are looking bullish, with the ratio of staked to unstaked NEAR rising, according to data from Flipside. This could bode well for the token's price performance.

Broader crypto market outlook appears bullish as Wednesday's U.S. CPI report has eased inflation concerns, allowing traders to shift their focus to Trump's swearing-in. On-chain analysis from 21Shares shows there's still plenty of upside left for BTC.

However, do note that a major announcement on crypto from Trump on day one could still lead to a sell-the-news scenario for digital assets.

"The macroeconomic backdrop remains supportive, with unemployment trending downwards, inflation showing signs of easing, and the market riding a wave of enthusiasm tied to Trump’s inauguration," Valentin Fournier, an analyst at BRN, told CoinDesk. "We maintain a bullish outlook for Q1, though a correction could happen this week if the new administration doesn't outline a solid action plan."

Elsewhere, BTC is trading at a discount on Coinbase compared to Binance, suggesting weaker demand from U.S. investors. Also, a whale moved BTC worth over $1 billion to Coinbase on Thursday, according to Arkham Intelligence data. Typically, transfers to exchanges indicate an intention to sell.

Lastly, keep an eye on inflation worries creeping back into the market. The U.S. PPI, which shows price pressures building up in the pipeline, rose above the CPI in December for the first time since 2022.

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Source: Farside Investors

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