Small-Cap Crypto Soars Ahead of Trump Inauguration, Bitcoin Sells at $100,000

Cryptocurrencies jumped on Thursday as investor appetite shifted to higher-risk and lower-risk coins ahead of President-elect Donald Trump’s inauguration.

XRP and litecoin were among the biggest movers, up 11% and 20%, respectively, according to Coin Metrics. The CoinDesk 20 indexthe broader crypto market benchmark, gained 4%.

Meanwhile, bitcoin It was up less than 1% at $100,000, a two day rally About 7% this week. Ether It fell 3% on Thursday.

“Retail investors are looking for opportunities as a new crypto-friendly administration prepares to enter,” Alexander Blum, CEO of consultancy Two Prime Digital Assets, told CNBC. “The Trump administration is a rising tide that will lift all boats in crypto, and altcoins are seeing some early gains.”

Trump’s inauguration is scheduled for Monday.

Trading platform operator Coinbase After adding 2% Robinhood It rose more than 1%. Microstrategywhich trades as a bitcoin proxy, also rose more than 1%.

“The first 50 days of Trump’s presidency will determine the trajectory of bitcoin in 2025,” said Gracy Chen, CEO of crypto exchange Bitget. “The crypto market’s expectations for his inauguration and his first steps as president are very high, which is confirmed by the sensitivity of the crypto market prices to his statements and appointments in the fourth quarter of 2024.”

During his campaign, Trump promised to install a crypto advisory board within his first 100 days in office and to replace Securities and Exchange Commission Chairman Gary Gensler, who had been a vocal opponent of the industry during his tenure. The CoinDesk 20 advanced 98% in the month following the November election. During that same period, bitcoin had a 46% gain.

Another thing driving action in small-cap cryptocurrencies is the government’s “expected strategic reserves to include other ‘American’ cryptocurrencies,” XRP and Solana sign, Blum said.

“This is unlikely, (but) it is a surprise and encourages speculators to buy the coins,” he said. “The best long-term value for investors will be in bitcoin.”

Trump has also promised to introduce favorable regulation to promote “made in the USA” domestic bitcoin mining and launch a strategic national bitcoin repository. Investors expect volatility in the flagship cryptocurrency this year, bitcoin stuck in a tug Between investors’ concerns about Trump’s rising inflation and optimism over his pro-crypto leadership.