Bitcoin (BTC) price surged to an unprecedented, new all-time high (ATH) of $109,350 early Monday, January 20, 2025, as cryptocurrency markets rallied hours before Donald Trump's scheduled inauguration as the 47th President of the United States.

In the background, there was a sharp rise in the new TRUMP crypto token, which surged over the past weekend, along with the broader digital asset market. Let’s explore why Bitcoin’s price is going up.

Why Is Bitcoin Price Up Today? BTC Jumps 6% Awaiting Donald Trump

The world's largest cryptocurrency jumped more than 6% in early Asian trading on Monday, surpassing its previous record of $108,000 set in December 2024. The digital asset has maintained strong momentum, trading at $107,518 at press time, earlier reaching a new ATH of $109,350 at Binance.

The latest rally comes amid growing anticipation of crypto-friendly policies under Trump's incoming administration. The president-elect has repeatedly signaled support for digital assets during his campaign, including proposals for establishing a strategic national Bitcoin reserve.

"Turning the pages with the new administration, we’re seeing a stark shift from outright hostility to full support," Tom Trowbridge, Co-Founder & CEO of Fluence, commented for Finance Magnates. "The appointment of David Sacks as the 'crypto czar' clearly signals a pro-crypto stance. The Crypto Reserve has the potential to set off a race among other countries to accumulate Bitcoin and other assets, and the US’s crypto-friendly policies will likely drive pro-crypto legislation globally."

As a result of these gains, the broader cryptocurrency market is also on the rise. Ethereum has added 3.5% in 24 hours, trading at nearly $3,400, while XRP is up 2%, reaching $3.20. Leading the gains is Chainlink, which has surged 15%, climbing to $26.50.

Bitcoin Technical Analysis, BTC in Price Discovery Mode

Bitcoin tested a new record price, but the previous ATH from mid-December still seems to act as significant resistance. This is evident as the price, after reaching historical highs, has pulled back below the psychological barrier of $108,000.

However, bulls can still rely on several key support levels on the BTC chart. Here are the major supports:

$104,000 – Highs from early December$102,400 – Local highs from the start of 2025$99,500 – A level marked by mid-November's local highs, close to the psychological threshold of $100,000$92,300 – A major support strengthened by the 38.2% Fibonacci retracement and the lower boundary of a consolidation zone lasting over two months

In my view, only a drop below this final support level (and the $90,000 mark) could signal a deeper correction for Bitcoin's price. Any movements above these levels seem to me like a temporary breather and an opportunity to buy at slightly lower prices.

TRUMP Token Shakes Up the Cryptocurrency Market

Just before the presidential inauguration, the "OFFICIAL TRUMP" token, ticker TRUMP, is also making waves, reaching levels above $70 on Sunday. Trump announced the token's launch through his official Truth Social and X accounts, assuring skeptics that the coin is indeed tied to him. Accompanied by the statement "WINNING," the announcement described the token as a celebration of his ideals and leadership.

For a brief period, TRUMP was among the top ten largest cryptocurrencies by market capitalization. However, following a recent correction and a price drop to $58, it now ranks 18th, with a market cap of just under $11.7 billion and an exceptionally high trading volume of $52 billion.

The correction was partly triggered by the debut of a competing token created by the future president’s wife, Melania Trump, with the ticker MELANIA.

"Besides the newly friendly crypto regulatory environment, the administration’s cost-conscious and tech-friendly initiatives should also help drive the adoption of crypto projects, especially in decentralized cloud and other DePIN sectors, which have the potential to save the government substantial funds," Trowbridge added.

Bitcoin Price Prediction 2025: How Will Trump Influence the Market?

Trump, who is set to take the oath of office at 4 PM CET, acknowledged Bitcoin's performance during a Sunday address, connecting it to broader market optimism. His administration's pro-crypto stance has contributed to ambitious year-end price targets ranging from $185,000 to $250,000.

It appears that these are not the most optimistic projections for Bitcoin. Late last year, I tried to answer the question: “Will Bitcoin hit $1 million?” Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, noted that this could happen if the U.S. government adopted Bitcoin as part of its reserve strategy. However, he currently estimates the likelihood of this scenario at just 10%.

Arthur Hayes, the founder of cryptocurrency exchange BitMEX, has also spoken about the potential for Bitcoin to reach $1 million. During a recent interview on Tom Bilyeu's show, Hayes shared his insights on the state of the cryptocurrency market.

“It’s the bull market. When the music is playing you gotta $DANCE.” ~ Arthur Hayes x Tom Bilyeu#crypto #dance #memecoin #solana #bullrun pic.twitter.com/g9MdkEtIZe

— DANCE MEMECOIN 🤩 (@dancememecoin) January 7, 2025

He suggested that Bitcoin could gradually move toward seven-figure valuations, potentially achieving this milestone within the next five years.

Bitcoin Price, FAQ

Why is Bitcoin surging right now?

Bitcoin's price has surged to a new all-time high of $109,350 due to market optimism surrounding the inauguration of Donald Trump as the 47th U.S. President. Anticipation of pro-crypto policies under his administration, such as a potential strategic national Bitcoin reserve, has driven significant market enthusiasm.

Why is Bitcoin predicted to go up?

Bitcoin is predicted to rise further due to several key factors. Institutional adoption continues to grow, with major financial institutions like Standard Chartered and analysts such as Tim Draper highlighting increased interest. Additionally, the 2024 halving event has led to a reduction in Bitcoin supply on exchanges, creating supply constraints that support price increases.

How much is $100 Bitcoin worth right now?

As of January 20, 2025, $100 worth of Bitcoin would be equivalent to approximately 0.000913 BTC, given the current price of $109,350 per Bitcoin.

What is the expected price of Bitcoin in 2025?

The expected price of Bitcoin in 2025 varies based on expert projections, ranging from $175,000 to $250,000. Analysts like Tim Draper and Tom Lee predict Bitcoin could reach $250,000, citing factors such as merchant adoption, the impact of the 2024 halving event, and a supply shortage on exchanges.

Standard Chartered forecasts a price of $200,000, driven by institutional inflows and regulatory clarity through spot ETFs. Meanwhile, Arthur Hayes projects a more conservative target of $175,000, highlighting traditional finance capital inflows as a key factor.

This article was written by Damian Chmiel at www.financemagnates.com.