Small-cap crypto rises ahead of Trump inauguration, bitcoin moves to $100,000

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

XRP And litecoin were among the biggest movers, 13% and 22%, respectively, according to the coin parameters. The CoinDesk 20 Index, a broad measure of the crypto market, gained about 5%.

Meanwhile, bitcoin It was less than 1% near $100,000 this week following a two-day rally of about 7%. Ether It fell to 3% on Thursday.

“Retail investors (retail investors) are looking for opportunities as they prepare to enter new pro-crypto management,” Alexander Blume, CEO of two-prime digital assets consulting firm, told CNBC. “The Trump administration is raising a wave that will lift all boats in crypto, and altcoins are already seeing the benefits.”

Trump’s inauguration is scheduled for Monday.

Marketing platform operators Coinbase And Robinhood Each increased approximately 2%. Micro strategyIt was less than 1% traded as a bitcoin proxy.

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

During the campaign, Trump promised to install a crypto advisory council within his first 100 days in office and replace Securities and Exchange Commission Chairman Gary Gensler, a prominent adversary of the industry during his tenure. CoinDesk’s 20 rose 98% in the month after the November election. Bitcoin posted a 46 percent gain over the same period.

Another thing driving the action on small-cap cryptocurrencies is the government’s “anticipated strategic reserves that could include XRP and other ‘American’ cryptocurrencies.” Solana Token, Blume said.

“This is unlikely, (but) it comes as a surprise and is prompting speculators to buy the coins,” he said. “The best long-term value for investors still resides in bitcoin.”

Trump has promised to establish favorable regulation to encourage domestic “made in the USA” bitcoin mining and establish a strategic national bitcoin reserve. Investors expect volatility in the major cryptocurrency this year, with bitcoin caught in a tug of war between investors over Trump’s inflation and their optimism about his pro-crypto leadership.