Bitcoin Hits $100,000 Again! Ethereum, Solana, and XRP Explode – What’s Next for Crypto?

Bitcoin (BTC) briefly surged past $100,000 following a nearly 3% rise, indicating a robust recovery after dipping below $90,000 yesterday. This surge is believed to be due to recently released inflation data and positive regulatory news that are seen as beneficial for the leading cryptocurrency. Currently, Bitcoin has fallen back under $100,000 and is being traded around $99,500 at the moment.

The total value of the cryptocurrency market surged by almost 3% to reach approximately $3.49 trillion, as significant gains were seen in major digital currencies. Ethereum climbed nearly 5%, returning to the $3,300 mark and currently trading around $3,371. Ripple experienced a rise of almost 10%, with a remarkable weekly increase of 30%. Solana increased by almost 7%, while Dogecoin saw an upward trend of nearly 5%. Alongside this, notable increases were observed in Cardano, Tron, Stellar, Chainlink, Hedera, Polkadot, and Litecoin. In other words, the market value of cryptocurrencies rose significantly, with Ethereum, Ripple, Solana, Dogecoin, and several others experiencing substantial growth.

Trump’s SEC Leadership Set To Initiate Crypto Overhaul

U.S. Securities and Exchange Commission (SEC) Republican officials plan to revise their cryptocurrency policy starting next week following Donald Trump’s inauguration. Commissioners Hester Pierce and Mark Uyeda are getting ready to start discussions on whether the agency considers cryptocurrencies a security, as well as re-evaluate ongoing crypto enforcement cases in court. Paul Atkins, Trump’s nominee for SEC Chair, may halt the crackdown on crypto led by Gary Gensler, but it remains uncertain if the Senate will approve him.

Once Gary Gensler departs, Pierce and Uyeda are expected to hold the majority among the agency’s politically appointed commissioners due to their close ties while serving under Atkins at the SEC. As aides to Atkins, they have established a strong working rapport, and according to sources from the SEC, they have already discussed potential modifications in crypto policies.

Analysts Warn Of Heightened Volatility

Despite the possibility of pro-cryptocurrency measures by the incoming administration, analysts have expressed concern about increased market instability in the cryptocurrency sector. As per Singapore-based QCP Capital, Trump’s actions are causing ripples in global markets, influencing them even before he assumes office. Concurrently, while job growth surpassed predictions with a non-farm payroll addition of +256,000 instead of the anticipated +165,000, there is still a rising anxiety about inflation within the economy.

Though Consumer Price Index (CPI) seems to be slightly over the 2% mark, market participants continue to forecast that the CPI figure for December will surpass the earlier reading.

As a researcher examining economic trends, I can’t help but express my concern about the potential impact of Trump’s proposed tariffs on China. These tariffs, while planned to be implemented gradually rather than immediately, are fueling apprehensions about inflation. Looking at the market forecasts according to QCP, it seems that investors are only anticipating two interest rate cuts, in 2025 and 2026, as bond yields climb higher. This could suggest a tightening monetary policy stance, which might be further influenced by the ongoing trade tensions.

Prepare for increased market turbulence both before and after the inauguration, since investors are processing and adapting to a fresh presidential term with Donald Trump.

Despite the current challenges, crypto investors can find optimism, as QCP notes, because the Trump administration houses crypto-friendly figures. It’s anticipated that this administration may issue favorable executive orders for cryptocurrencies, potentially boosting the markets temporarily.

Altcoins Rally

The market for alternative cryptocurrencies surged by more than 8%, nearly twice the growth of Bitcoin, as overall sentiment in the markets became more optimistic. Solana (SOL) experienced a significant surge due to increased on-chain activity and the incorporation of AI-focused projects within its infrastructure. Stellar (XLM) and Ripple (XRP) both maintained their upward momentum, with XLM jumping 14% and XRP rising by over 12% on Wednesday. Both XLM and XRP have similarities due to being co-founded by Jed McCaleb, and they share several key functionalities aimed at transforming cross-border payments and financial inclusion through decentralized networks. Concurrently, Polygon (MATIC) increased by 5% to reach $0.48 on Wednesday, receiving support from the growing interest in scalability solutions.

Bitcoin (BTC) Price Analysis

On Wednesday, Bitcoin (BTC) momentarily reached $100,000 due to encouraging inflation data and favorable regulatory updates that bolstered stocks. This recovery follows BTC’s dip below $90,000 earlier in the week, dropping as low as $89,941 before rebounding. The latest Consumer Price Index figures indicate a higher likelihood of the Federal Reserve lowering interest rates in the future, allaying concerns among investors about prolonged rate holds or increased interest rates. With lower interest rates and treasury yields, investors are inclined to invest in riskier assets such as Bitcoin. Furthermore, there are indications that the SEC’s new leadership aims to revamp their crypto policies. According to reports, the SEC may offer clear-cut guidance on whether a cryptocurrency is classified as a security – a clarification long sought by many within the crypto community.

During the current trading period, Bitcoin (BTC) has slipped back into the negative territory following a brief surge over $100,000 on Wednesday. This recent upward trend for BTC follows a substantial decline it experienced the previous week, dipping below crucial support levels and moving averages.

Last week began with optimism as BTC rose by 3.99%, surpassing $100,000 to reach $102,228. However, sentiment turned bearish on Tuesday, causing BTC to drop by over 5% and fall below the 50-day Simple Moving Average (SMA), settling at $97.019. The downward trend continued on Wednesday, with BTC dipping beneath the 20-day SMA to an intraday low of $92,546 before closing at $95,121. On Thursday, sellers maintained control, leading to a further drop of 2.53%, pushing BTC down to $92,710.

Despite a generally negative outlook towards BTC, it experienced a significant 2% growth on Friday, reaching an intraday peak of $95,799. Yet, it failed to surpass its 20-day Simple Moving Average (SMA) and ended the day at $94,818. The weekend saw a slight downturn on Saturday with BTC dropping to $94,542, followed by a minor uptick on Sunday that moved the price to $94,484. However, on Monday, BTC took a steep dive, falling below $90,000 and reaching an intraday low of $89,397. Despite this dip, buyers stepped in, helping BTC regain $90,000 and ending the day at $94,492, experiencing only a minimal decline. The sentiment shifted positive on Tuesday as BTC increased 2% and crossed its 20-day SMA to end the day at $96,566. On Wednesday, bullish sentiments strengthened with an increase of 3.61%, allowing BTC to surpass both its 50-day SMA and the $100,000 mark, settling at $100,050. However, during the current session, the price has dipped again, moving below $100,000 and trading around the $99,650 level.

Ethereum (ETH) Price Analysis

On Wednesday, Ethereum (ETH) climbed above $3,400, pushed up by buyers. But during the current session, it has dropped back below $3,400 as its upward push seems to have slowed. ETH’s momentum faltered after it reached a high of $3,744 last Monday. With negative sentiment resurfacing, there was a significant drop in ETH’s price, amounting to approximately 8% on Tuesday, causing it to slide below the 20 and 50-day moving averages, $3,500, and settling at $3,381. The price continued to decline on Wednesday, reaching a low of $3,217 before settling at $3,327. On Thursday, sellers maintained control, causing ETH to drop by 3.20% to $3,220.

On Friday, ETH saw a boost, rising by 1.45% to reach $3,267. The following day, it experienced minimal growth, peaking at $3,283 before sliding into the negative on Sunday, finishing at $3,266. The week started with a bearish outlook as ETH plummeted to an intraday low of $2,927, dipping below the 2000-day Simple Moving Average (SMA). However, it rebounded when buyers stepped in, eventually settling at $3,137 after a nearly 4% drop. The price picked up on Tuesday, increasing by almost 3% to $2,336. Confidence among bulls strengthened on Wednesday as ETH climbed almost 7%, surpassing the 20-day SMA and $3,400 to close at $3,450. However, it has slipped back into a downtrend during the current session, falling almost 2% and trading around $3,381.

Solana (SOL) Price Analysis

On Tuesday, Solana (SOL) saw a significant decline after it couldn’t surpass its 50-day Simple Moving Average (SMA). This downturn caused SOL to dip by more than 7% and close at $202. The following day, Wednesday, sellers held the reins as SOL dropped to an intra-day low of $188 before recovering slightly to end at $197, just above its 20-day SMA. On Thursday, selling pressure escalated and SOL plunged over 6% to fall below its 20-day SMA, closing at $185. However, the price of SOL rebounded on Friday, rising by 1.46% to reach a high of $193 before finishing at $187. Over the weekend, there was intense volatility in SOL as both buyers and sellers fought for control. By the end of the weekend, buyers had managed to gain the upper hand, causing SOL to register slight increases on Saturday and Sunday, closing the weekend at $188.

To begin this week, SOL found itself in a negative position, dipping to an intraday low of $169 due to selling pressure. The price subsequently rebounded to close at $182, representing a nearly 3% decrease. On Tuesday, SOL experienced a recovery, climbing by 2.57% to reach $187. Optimism grew stronger on Wednesday as SOL soared more than 10%, surpassing $200 and the 20-day Simple Moving Average (SMA), settling at $205. However, during the current trading session, SOL has once again slipped into the red, with sellers aiming to push it below the $200 mark.

Bittensor (TAO) Price Analysis

Last week, Bittensor’s price trend predominantly moved downwards, dipping beneath its 50-day Simple Moving Average (SMA) on Tuesday to reach a low of around $499. The descent continued on Wednesday, dropping below the 20-day SMA to an intra-day minimum of $439 before settling at $466. On Thursday, sellers maintained control, causing TAO to drop by over 7% to $432. The price fluctuated significantly on Friday as buyers and sellers vied for dominance. By the end of the day, buyers managed to take charge, pushing TAO up by about 1.50%, reaching $439. On Saturday, TAO continued its positive trend, increasing by 1.41% and ending the day at around $445. However, it lost some momentum on Sunday, decreasing nearly 1% to close the week at $442.

On Monday, a more pessimistic outlook emerged as TAO plummeted by over 5%, dipping below its 200-day Simple Moving Average (SMA) to reach an intraday low of $384. However, it managed to rebound from this point, closing at $420. The following day, Tuesday, TAO continued to decline, dropping nearly 1% to $416. But on Wednesday, the market’s sentiment changed dramatically, causing TAO to skyrocket by over 10%, moving past its 200-day SMA and ending at $459. As of the current trading session, TAO has seen a drop of almost 3% and is currently trading around $447.

Ripple (XRP) Price Analysis

On Wednesday, XRP surpassed $3 following a nearly 18% surge, moving beyond its sideways trend. With the $3 barrier surmounted, XRP could continue an upward trend if buyers sustain their momentum. For most of the previous week, XRP was confined to a narrow trading range, but it broke free on Saturday after recording a rise of more than 10% and settling at $2.57. However, it failed to exceed the resistance around $2.60 and slipped back into negative territory on Sunday, dipping nearly 3% to $2.50.

This week’s trading started with XRP dipping to a low of $2.33 due to selling pressure. But it bounced back from that point, rising by 0.79% and reaching $2.52. On Tuesday, buyers managed to push XRP above the resistance at $2.60, closing the day at $2.66. The bullish trend became stronger on Wednesday as XRP experienced a nearly 18% surge, moving above $3 and settling at $3.14. However, during the current session, sellers are trying to push XRP below $3, causing it to drop by more than 2%, trading around $3.08.

Uniswap (UNI) Price Analysis

On Wednesday, Uniswap (UNI) climbed over its 20-day Simple Moving Average (SMA), but it failed to break above this level as the upward momentum slowed near $14.50. Consequently, UNI is currently experiencing a drop during the present trading session. After hitting an intraday low of $12.39 on Thursday following a very bearish week and falling below a significant support level, UNI saw a surge of over 8% on Friday, peaking at $13.94. However, the 20-day SMA served as resistance, preventing further growth. With sellers active around this level, UNI fell again on Saturday, decreasing by more than 2% to $13.64. It experienced a slight decrease on Sunday, closing the weekend at $13.63.

On Monday, pessimism deepened regarding UNI, causing it to reach a low of $12.08 before rebounding to close at $12.89, marking a decrease of 5.41%. However, optimism emerged on Tuesday as UNI rose by more than 3% to $13.32. The mood became increasingly positive on Wednesday when UNI surpassed its 20-day moving average and ended the day at $14.52. Despite a significant increase on Wednesday, UNI failed to exceed the 50-day moving average and slipped back into negative territory during trading hours, dropping over 3% and currently hovering around $14.08.

Pudgy Penguins (PENGU)

Last week saw a downward trend for the Pudgy Penguins (PENGU) market, with Tuesday marking a significant decrease of approximately 14%. The price plummeted further on that day, reaching an intraday low of $0.032 before slightly rebounding to close at $0.035. On Thursday, PENGU dropped below its 20-day Simple Moving Average (SMA) following a fall exceeding 7%. Buyers made an attempt to recover on Friday, pushing the price up to an intraday high of $0.035. However, their efforts waned after reaching this level, causing PENGU to slide down to $0.033, incurring minimal growth.

Over the weekend, I noticed that sellers regained dominance on Saturday, causing PENGU to dip about 2% to $0.032, although it managed a slight uptick to close at $0.033 on Sunday. The selling pressure became more pronounced on Monday as the price plummeted to an intraday low of $0.028. However, it bounced back from this level and recaptured $0.030, ending the day at $0.031, resulting in a nearly 5% drop. But on Tuesday, buyers re-entered the market, propelling PENGU up by almost 2%. The bullish sentiment intensified on Wednesday, pushing PENGU up around 11%, reaching $0.035. However, during the current session, the trend has turned bearish once more, with a nearly 6% decrease, leaving me with PENGU trading at $0.033.

2025-01-16 17:35