This week, Bitcoin (BTC) briefly surged to an all-time high of $109,114, propelled by the optimism surrounding President Trump’s inauguration and his administration’s anticipated crypto-friendly policies. However, the euphoria was short-lived as BTC dipped to $100K before recovering to around $104K at the time of writing. Here’s a breakdown of the past week’s highlights.Bitcoin Hits $109K: What Drove the Surge?
Bitcoin soared to new heights, hitting $109,114, marking a $2.15 trillion market valuation. The rally was fueled by:
  • Trump’s Pro-Crypto Administration: Optimism around President Trump’s crypto policies, including appointing Paul Atkins—a known crypto advocate—as SEC Chair, bolstered confidence.
  • World Liberty Financial’s Crypto Purchase: On Trump’s first day in office, World Liberty Financial, a DeFi project associated with the President, acquired $112 million in crypto, including $47M in wrapped BTC and $47M in ETH. This demonstrated tangible support for digital assets.
Post-Inauguration: Bitcoin Pulls Back
Despite early optimism, Bitcoin fell as Trump’s inauguration speech made no mention of cryptocurrency. Many in the crypto community had hoped for bold announcements, such as:
  • Establishing a U.S. Bitcoin Reserve.
  • Repealing restrictive SEC rules like SAB 121.
Instead, the focus was on trade tariffs, immigration policies, and an ambitious Mars colonization plan. This omission led to a “sell-the-news” event, with BTC retreating to $100K before recovering.Technical Analysis: Where Does BTC Go From Here?
Bitcoin’s technical indicators suggest mixed signals:
  • Bullish Case: Analysts highlight the need for a weekly close above $103K to maintain momentum toward $127K. If BTC reclaims $109K, the next target could be $125K.
  • Bearish Case: A double-top pattern and long upper wick on recent candles could indicate a potential reversal. Support at $100K remains critical, with a break below this level opening the door to $90K.
The Bigger Picture
While the lack of direct crypto mentions in Trump’s speech disappointed some, his administration’s actions speak louder than words. With the appointment of pro-crypto officials and institutional adoption gaining traction, the medium-term outlook for Bitcoin remains bullish. However, market volatility, as seen this week, highlights the need for caution.Investor Sentiment
The crypto market’s Fear and Greed Index is at 76, signaling “extreme greed.” Historically, such conditions precede corrections, but they also showcase strong demand for BTC as a store of value.Conclusion
Bitcoin’s journey past $109K marks a historic milestone, driven by optimism for regulatory clarity and institutional adoption. While short-term volatility persists, the momentum for Bitcoin as a global financial asset remains strong. As we look ahead, BTC’s ability to break and sustain levels above $109K will be a key narrative to watch.