The post How Trump’s inauguration could trigger a Bitcoin rally OR a crash appeared on BitcoinEthereumNews.com.

BTC’s STH MVRV seemed to be at an inflection point that could fuel or dump BTC Options traders increased hedging activity ahead of Trump’s inauguration Bitcoin [BTC] is at a crossroads ahead of Donald Trump’s presidential inauguration on 20 January. That’s not all though, as a key valuation indicator, STH (short-term holders) MVRV, has retreated to a pivotal point too.  Is another ‘Trump pump’ likely? At press time, the STH’s realized price was valued at $86k. Factoring the STH MVRV level, this could be a bullish trigger for BTC, according to CryptoQuant analyst Axel Adler. Adler noted,  “Currently, the STH Realized Price stands at $86.8K. If demand persists until Trump’s inauguration, the STH RP could rise to $90K. Should the president fulfill even some of the promises made to voters in the early days of his term, this could serve as a strong bullish trigger.” Source: CryptoQuant The chart attached revealed that the STH MVRV bounced at the mean level in January 2024. Afterwards, BTC saw an 88% pump to $72k. This also coincided with the approval of the U.S Spot BTC ETFs, suggesting that a repeat could be likely if Trump makes any bullish announcements for the sector.  On the contrary, a drop below the mean level for STH MVRV has historically indicated a prolonged downtrend or price consolidation for BTC. This could happen if BTC’s price drops below the STH cost basis, which was at $88k at the time of writing, according to Glassnode.  The analytics firm stated,  “$BTC price is now around 7% above the STH cost-basis of $88,135. If the price stabilizes below this level, it can signal waning sentiment among new investors – which is often a turning point in market trends.”  Source: Glassnode In short, if BTC defends $88k before or after Trump’s inauguration,…

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Filed under: News - @ January 11, 2025 10:21 am