Bitcoin, Ethereum, and Dogecoin Hold Steady Amid Anticipation of Pro-Crypto Policies from President Trump

Leading cryptocurrencies have shown resilience on Thursday as discussions emerge regarding President-elect Donald Trump's plans to introduce various pro-cryptocurrency initiatives after his inauguration.

Cryptocurrency	Gains +/-	Price (as of 8:30 p.m. ET)
Bitcoin (BTC/USD)	+0.31%	$100,211.61
Ethereum (ETH/USD)	-1.77%	$3,340.29
Dogecoin (DOGE/USD)	+0.54%	$0.3789

What Happened: Bitcoin has fluctuated in the vicinity of $100,000, successfully regaining this psychologically significant level a day prior, aided by milder inflation statistics.

Ethereum remains within the $3,300 to $3,900 range, as investors are eager for the asset to recover the $4,000 mark it achieved last month.

There is a palpable sense of optimism in the cryptocurrency sector as Trump's inauguration date looms on January 20. Reports suggest that the future president intends to elevate cryptocurrency policy as a national focal point.

Over the past 24 hours, there were liquidations exceeding $332 million in the cryptocurrency arena, with around $188 million resulting from long position liquidations.

If Bitcoin reverts to around $95,000, close to $960 million in long positions could potentially be liquidated.

In the last day, Bitcoin's Open Interest saw an uptick of 2.21%. This combination of sideways price action and increased Open Interest is often indicative of potential upward breakouts.

However, more than half of the derivatives traders on Binance are placing short bets on Bitcoin, signaling expectations of a market correction.

Leading Gainers of the Day

Cryptocurrency	Gains +/-	Price (as of 8:30 p.m. ET)
Hedera (HBAR)	+23.49%	$0.387
Algorand (ALGO)	+12.24%	$0.4854
EOS (EOS)	+10.61%	$0.9507

Currently, the total market capitalization for cryptocurrencies stands at $3.52 trillion, reflecting a slight increase of 0.04% over the past 24 hours.

In contrast, the stock market faced declines on Thursday, reversing previous gains. The Dow Jones Industrial Average dipped by 68.42 points, or 0.16%, closing at 43,153.13. Meanwhile, the S&P 500 concluded a three-day upward trend by finishing 0.21% lower at 5,937.34, and the tech-centric Nasdaq Composite lost 0.89%, ending at 19,338.29.

Major tech companies such as Tesla Inc. and Nvidia Corp. saw declines of 3.44% and 1.96%, respectively, which likely contributed to the overall market sell-off.

Insights from Analysts

On-chain analyst Ali Martinez highlighted Bitcoin's Long Term Holder Net Unrealized Profit/Loss indicator, which illustrates market sentiments shifting between "Euphoria" and "Greed" among long-term investors.

The Net Unrealized Profit/Loss metric is used to assess investor emotions over time by comparing the market value to the realized value for a specific cryptocurrency.

Additionally, a well-known cryptocurrency analysis account noted that Bitcoin is facing considerable resistance in the $101,000 to $103,000 range. If it manages to break through this zone, it could lead to new all-time highs. However, if it's unable to maintain that push, a decline back to the $93,000 to $91,000 region may become possible, although this scenario seems less probable.

As expected, Bitcoin's price saw a minor downturn when it reached this resistance level, but it is now working to reclaim that threshold. Frequent tests of this resistance area appear to be weakening it.

Photo by Avi Rozen on Shutterstock

In related developments, there are reports indicating that Trump may consider establishing a U.S. cryptocurrency reserve as discussions surrounding Bitcoin reserves intensify.

Bitcoin, Ethereum, Dogecoin