Bitcoin price could be evolving to a macro consolidation structure amid rising possibilities of a sell-the-news event following Trump’s inauguration.
Whale investors have continued to relentlessly accumulate more BTC despite the short-term volatility and market uncertainties.
After rallying to a new all-time high (ATH) of about $109K on Monday during the 2nd inauguration of pro-crypto US President Bitcoin price dropped over 5% in the last 24 hours to trade about $102,326 on Tuesday, January 21, during the mid-London session. The flagship coin has now retested the crucial support level above $100K for the second time, signaling a potential bullish sentiment in the near term.
From a technical price analysis, Bitcoin price has been retesting the bullish breakout from a narrowing wedge, which formed in mid-November. However, the bearish short-term sentiment could prevail, especially after BTC closed Monday in a shooting star candlestick.
The short-term bearish sentiment is bolstered by the higher-than-expected inflation and a more hawkish sentiment from the Federal Reserve chair ahead of the rate policy change next week. Nonetheless, Bitcoin’s macro bullish sentiment is heavily influenced by the optimism of Donald Trump’s positive crypto regulatory action.
On the first day of office, Trump directed the government agencies to work on reducing inflation and the cost of living.
Additionally, long-term investors are banking on the adoption of Bitcoin by nation-states, especially when the Trump administration establishes a strategic BTC reserve. As Coinspeaker reported, several US states led by Massachusetts, Texas, and Utah have already introduced a proposal for a strategic BTC reserve.
Whale Investors Relentlessly Accumulate More Bitcoin
The demand for Bitcoin among institutional investors has remained high, as a hedge against global inflation, fiat devaluations, and macroeconomic market uncertainties. According to market data analysis by , Bitcoin’s open interest (OI) retested its all-time high above $67 billion.
Meanwhile, the overall supply of Bitcoin on centralized exchanges has continued to drop to a multi-year low of about 2.19 million, further escalating the supply vs demand shock. The anticipated entrance of nation-states into the Bitcoin industry has further increased the appetite of institutional investors.
For instance, (WLFI) commemorated the inauguration of Trump with a strategic crypto purchase, worth over $100 million. The Trump family-backed DeFi protocol purchased $47 million in Wrapped Bitcoin , thus cementing the President’s position on digital assets.
On Monday, defied the criticism from the IMF and purchased 11 BTC, thus currently holding over 6,043 Bitcoins, worth over $611 million.
Meanwhile, the US spot BTC ETFs have been major Bitcoin purchasers in the past year. Led by ’s IBIT and Fidelity’s FBTC, the US spot Bitcoin ETFs have accumulated more than 1 million BTCs, worth over $120 billion at the time of this writing.
As a result, it is safe to assume that the future of Bitcoin is brighter than before, especially with Trump as the US president.
