Weekly Digest: TRUMP Token Explodes the Market Ahead of Inauguration
Bitcoin breaks the $105,000 mark, and the main event of the week was the launch of the TRUMP memecoin on the Solana blockchain three days before Donald Trump's inauguration. The token showed phenomenal growth, increasing the future U.S. president's wealth sevenfold.
1-day chart BTC/USDT. Source: Cryptocurrency screener Cryptovizor
The TRUMP Phenomenon on Solana
The TRUMP memecoin was announced on the elected president's social networks on January 18, just three days before the inauguration. Within the first 24 hours, trading volume exceeded $12 billion, and the token's price rose by 490%. The market capitalization of TRUMP reached $9.588 billion, allowing the token to enter the top 20 cryptocurrencies.
The launch of TRUMP had a significant impact on the Solana ecosystem — the platform's native token SOL set a new all-time high of $279. According to Arkham Intelligence, 80% of the maximum supply of TRUMP tokens is concentrated in one wallet. At the current price of around $46, the potential value of this share amounts to about $38 billion.
1-day chart SOL/USDT. Source: Cryptocurrency screener Cryptovizor
Political Games with Bitcoin
The approaching return of Trump to the White House may herald a new era for the cryptocurrency industry. According to Bloomberg, the elected president plans to sign an order making cryptocurrencies a national priority immediately after taking office on January 20.
Amid this news, eight American states, including Wyoming, Texas, and Massachusetts, have come up with initiatives to create their own strategic bitcoin reserves. The likelihood of forming a federal cryptocurrency reserve is estimated at 70% on the Kalshi platform.
Corporate Race for Bitcoin
MicroStrategy continues to increase its cryptocurrency portfolio. The company purchased bitcoins for $243 million at an average price of $95,972, raising the total volume of its bitcoin assets to 450,000 BTC. The total value of the company's cryptocurrency investments reached $28.2 billion at an average purchase price of $62,691.
According to analysts from Bitwise, hundreds of companies will start buying bitcoin over the next year and a half. The head of the company's investment department believes that reducing reputational risks and new cryptocurrency accounting rules will become catalysts for a mass influx of corporate capital.
Regulatory Changes
The Securities and Exchange Commission (SEC) continues its active actions ahead of the leadership change. The regulator fined Digital Currency Group $38 million for misleading investors. Additionally, the exchange BitMEX agreed to pay a $100 million fine for violations of U.S. banking laws.
Technological Innovations
Vitalik Buterin announced significant changes in the management of the Ethereum Foundation, emphasizing the need to enhance technical expertise and improve communication between the foundation and developers.
The SoSoValue platform announced the upcoming launch of its own token and a massive airdrop of $200 million. In the first season, the company will distribute 49 million SOSO tokens, amounting to 4.9% of the total issuance.
Market Forecasts and Expectations
Leading trader and analyst Filbfilb considers a target of $180,000 as the real goal for the current bull market. In his opinion, even a price of $130,000 will be an "excellent result" for this cycle.
Analysts from CryptoQuant forecast bitcoin to rise to $249,000 in 2025. They estimate that the new administration's policies could stimulate an influx of $520 billion into the premier cryptocurrency.
Analysts from HashKey expect bitcoin to rise to $300,000 in 2025 amid increased regulatory oversight, an influx of traditional capital, and accelerated technological progress.