Bitcoin has surged past $100,000 again, reigniting momentum across the digital asset market. On January 18, BTC briefly approached $106,000, marking a 24-hour gain of over 4%. Altcoins followed suit, with Dogecoin climbing more than 13%. The rally extended beyond cryptocurrencies themselves—crypto-related stocks also posted strong gains. MicroStrategy jumped over 8%, Coinbase rose nearly 5%, CleanSpark gained over 6%, and Marathon Digital (MARA) climbed close to 9%.
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This renewed bullish sentiment comes amid cooling U.S. inflation data, which has revived market expectations for Federal Reserve rate cuts. The Labor Department reported that December’s core Consumer Price Index (CPI)—excluding food and energy—rose just 0.2% month-over-month, down from 0.3% the prior month. Year-over-year, core CPI slowed to 3.2% from 3.3%, both figures below forecasts. With inflation pressures easing, traders are increasingly betting on a potential rate cut by July.
Market Volatility Triggers Massive Liquidations
Despite the upward momentum, sharp price swings have led to significant investor losses. According to Coinglass, the past 24 hours saw $277 million in total liquidations across the crypto market, affecting approximately 96,000 traders. Of that amount, $179 million came from long positions being wiped out, while short liquidations accounted for $97.5 million—indicating strong buying pressure overwhelmed bearish bets.
Jake Ostrovskis, a trader at crypto market maker Wintermute, noted: “PPI and CPI came in softer than expected, alleviating macroeconomic concerns and allowing traders to refocus on upcoming crypto catalysts.” He added that markets are now pricing in higher volatility around key political events, particularly the upcoming U.S. presidential inauguration.
Trump’s Expected Crypto Executive Order Sparks Market Frenzy
A major driver behind the latest surge is speculation surrounding President-elect Donald Trump’s imminent policy agenda. Bloomberg recently reported that Trump plans to issue an executive order elevating cryptocurrency to a “policy priority,” directing federal agencies to collaborate with the digital asset industry. The move could include forming a new crypto advisory council composed of industry leaders and integrating blockchain experts into his administration.
Since winning the November 5 election, Bitcoin has appreciated over 50%, peaking at an all-time high of $108,300 in December. While this suggests strong market confidence in pro-crypto policies, analysts warn of a potential “sell the news” correction once formal measures are announced.
Cosmo Jiang, Portfolio Manager at Pantera Capital, believes short-term profit-taking may occur but won’t derail the long-term trend:
“We expect a wave of executive orders shortly after Trump’s inauguration—some specifically favorable to digital assets. Yes, there might be a knee-jerk sell-off, but those who exit early will miss the bigger transformation.”
However, not all experts share the same optimism. Sean McNulty, Head of Derivatives APAC at liquidity provider FalconX, cautions that options market behavior shows skepticism about immediate follow-through:
“The inauguration could disappoint if concrete actions don’t materialize quickly. Markets often price in hope before delivery.”
Strategic Bitcoin Reserves Gain State-Level Momentum
Bitcoin is increasingly viewed not just as a speculative asset but as a strategic reserve instrument. As part of what some call the “Trump trade,” institutional and governmental interest in holding Bitcoin is growing rapidly.
Several U.S. states are advancing legislation to allocate public funds into Bitcoin as a hedge against inflation:
- Oklahoma introduced House Bill 1203—the Strategic Bitcoin Reserve Act—allowing state pension funds and savings accounts to invest in digital assets with an average market cap exceeding $500 billion over the previous year. Currently, only Bitcoin qualifies.
- Pennsylvania proposed allocating up to 10% of its $7 billion reserve to Bitcoin.
- Texas unveiled a plan to create a special fund holding Bitcoin for at least five years.
- Ohio, North Dakota, and New Hampshire have also introduced similar bills.
Cody Maynard, the Oklahoma state representative behind the bill, emphasized responsible management:
“These assets will be stewarded prudently to meet fiduciary standards, generate reliable returns for residents, and protect purchasing power from inflation.”
Dennis Porter, founder of Satoshi Action Fund—a group supporting these legislative efforts—stated that half of their goal to introduce Bitcoin reserve laws in 12 states has already been achieved.
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Institutional Support Meets Political Alignment
The convergence of political will and financial infrastructure is accelerating adoption. Major crypto firms are aligning with the incoming administration through formal support:
- Circle, issuer of USDC, donated $1 million in stablecoins to Trump’s inauguration fund.
- Robinhood Markets contributed $2 million—the largest public tech-sector donation so far.
- Coinbase, Kraken, Ripple, and MoonPay have also made contributions.
These moves signal deepening ties between the digital asset ecosystem and U.S. policymaking—a shift that could lead to clearer regulations, favorable tax treatments, and broader financial integration.
Core Keywords Driving Market Sentiment
The current rally is fueled by several interconnected themes:
- Bitcoin price surge
- Federal Reserve rate cuts
- Trump crypto policy
- Strategic Bitcoin reserve
- Crypto stock performance
- Market volatility
- Institutional adoption
- State-level crypto legislation
These keywords reflect both investor behavior and macro-level shifts shaping the future of digital finance.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin surge above $100K again?
A: The rally was triggered by softer-than-expected U.S. inflation data, boosting hopes for Fed rate cuts, combined with anticipation of pro-crypto policies under the incoming Trump administration.
Q: What is a strategic Bitcoin reserve?
A: It’s a government initiative allowing state funds—like pensions or treasury reserves—to hold Bitcoin as an inflation hedge and long-term investment vehicle.
Q: How many people were liquidated during the recent price swing?
A: Over 96,000 traders faced liquidations totaling $277 million in the last 24 hours due to extreme volatility.
Q: Is Trump officially pro-crypto?
A: While no formal policies have been enacted yet, Trump has publicly supported deregulation of the crypto industry and plans to issue executive orders prioritizing digital assets upon taking office.
Q: Could this rally lead to a “sell the news” event?
A: Yes—many analysts warn that once Trump assumes office and announces specific measures, short-term investors may cash out, leading to temporary pullbacks despite long-term bullishness.
Q: Which states are adopting Bitcoin as a reserve asset?
A: Oklahoma, Pennsylvania, Texas, Ohio, North Dakota, and New Hampshire have all introduced legislation to establish state-level Bitcoin reserves.
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