Bitcoin in Tension Ahead of Trump’s Inauguration

The price of Bitcoin (BTC) opened higher on Wednesday and is showing stabilization after a sudden drop below $90,000 earlier this week. As the crypto market anticipates US President Donald Trump’s inauguration on January 20, on-chain data suggest that smart money remains cautious.

Bitcoin Price Stabilizes

Bitcoin price opened higher on Wednesday, peaking at the $97.65K price mark, its highest in over a week. On lower timeframes, BTC shows some stabilization, remaining within the $97-96K range.

Bitcoin price movements. Source: CMC

Bitcoin, the world’s largest cryptocurrency, remains 10.69% below its all-time high of $108,268, reached last month after Donald Trump’s victory in the November election. 

However, expectations are mounting for a renewed upward trend as the presidential inauguration approaches on January 20.

Trump’s promises to the crypto community, including creating a US strategic Bitcoin reserve and easing cryptocurrency regulations, are seen as market-friendly moves.

Institutional Buyers Remain Cautious

Capital flows into bitcoin exchange-traded funds (ETFs) reflect market uncertainty. BTC ETFs have seen outflows for four consecutive days, totaling $1.226 billion.

BlackRock’s IBIT ETF led the outflows on Tuesday, recording the most significant withdrawal at $219.48 million, according to SosSoValue’s data .

On the Flipside

• Stalled stablecoin supply, with top stablecoins holding steady at $189 billion, signals limited fresh capital inflows into the market, raising doubts about Bitcoin’s bullish recovery.

Why This Matters

Altcoins are closely tracking Bitcoin’s price movement. If the market’s largest crypto asset dominance continues to rise, it could temporarily halt the altcoin rally as capital flows shift predominantly toward BTC.

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