Bitcoin (BTC) has experienced a rollercoaster of movements, with the price hovering near break-even levels. After a positive close on Monday with a near-1% gain, BTC struggled on Tuesday, falling by 5.64%. Investors are now speculating whether Bitcoin could crash below the critical $100K level again, especially following the lack of any major crypto-related announcements from former U.S. President Donald Trump.
Will Bitcoin Crash Under $100K Again?
The sentiment in the crypto market suggests that Bitcoin may indeed dip below $100K if Trump or his administration does not make any pro-crypto announcements. On the heels of Trump’s inauguration, the crypto market saw a sharp downturn, with Bitcoin losing nearly 7% in just 8 hours. Meanwhile, the meme coin TRUMP plummeted by 40%. These market reactions highlight the weight that any statements or actions from Trump hold in shaping Bitcoin’s price movements.
Key Crypto Announcements That Could Move the Market
Investors have been anticipating two major announcements from the former president. First, many are hoping for the pardon of Silk Road founder Ross Ulbricht, a key figure in the cryptocurrency world. Second, there are expectations that Trump may announce plans for a strategic Bitcoin reserve. Instead of these, the crypto community was greeted by news of Trump’s World Liberty Financial making significant crypto purchases:
- $47 million in Wrapped Bitcoin (WBTC)
- $47 million in Ethereum (ETH)
- $4.7 million in Aave (AAVE)
- $4.7 million in TRON (TRX)
- $4.7 million in Chainlink (LINK)
MicroStrategy’s Bitcoin Acquisition Strategy
Amid the market uncertainty, long-term investors are looking for opportunities to buy Bitcoin at a discount. MicroStrategy, led by Michael Saylor, is one such investor. The company plans to increase its authorized shares to continue its Bitcoin purchasing strategy. This move is expected to bring more attention to Bitcoin’s future price trajectory as MicroStrategy hints at another potential purchase.
Switching to orange dots to celebrate the Inauguration of @realDonaldTrump, The 1st Bitcoin President! pic.twitter.com/5dxCVwKSFR
— Michael Saylor⚡️ (@saylor) January 20, 2025
Bitcoin’s technical analysis shows a solid support level at $100K. The four-hour chart indicates that BTC is currently bouncing off the $100,614 price point, with bullish momentum expected to continue as long as this support holds. If BTC maintains its upward trend, it could rally toward its all-time high of $109,237, with further upside potential if the buying pressure persists.
In conclusion, while Bitcoin’s price may face some volatility, the outlook remains bullish, and any dips below $100K could quickly trigger a buying spree, pushing the cryptocurrency to new heights.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Crypto Market Takes a Dip: Bitcoin Stays Strong at $101K, TRUMP Coin Faces Sharp Decline
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