Bitcoin Breaks $105K: Is 'Trump Pump' or Institutional Involvement Fueling the $3.63 Trillion Crypto Economy?
Bitcoin (BTC) surged 5.7% against the US dollar to a new high of $105,246 just days before President-elect Donald Trump is set to take office on January 20, 2025. The market is abuzz with speculation about major crypto policy changes under Trump, including the possibility of the US creating a strategic bitcoin reserve.
Bitcoin Surpasses $105,000: Is 'Trump Pump' or Institutional Adoption Driving the $3.63 Trillion Crypto Economy?
Bitcoin (BTC) hit a new high of $105,246 on January 17, 2025, an impressive jump. Meanwhile, Ethereum (ETH) also recorded a modest gain of 2.8%, while dogecoin (DOGE) was the standout among the top cryptocurrencies, up 8.34%. However, the biggest surge belonged to spx6900 (SPX), which surged 41.03% against the dollar. Chex token (CHEX) followed with a 24.63% gain, while fartcoin (FARTCOIN) recorded a 22.2% gain.
Other tokens that rose strongly included FLR with a 21.76% gain, POPCAT with a 20.07% gain, and OKB with a 17.79% gain. However, not all assets saw gains. Codes such as AI Rig Complex (ARC) fell 17.85%, Freysa AI (FAI) fell 14.2%, and XDC fell 12.47%. Tokens like AI16Z fell 11.98% and AIXBT fell 7.15%.
Cryptocurrency market excitement triggers large liquidations
The rapid growth has led to large liquidations in the crypto derivatives market, with a total liquidation value of $270.83 million, of which $159.90 million came from short positions. Bitcoin alone saw $75.27 million in short positions wiped out. Over 87,321 traders were liquidated in the past 24 hours, with the largest one occurring on Binance, where a single Bitcoin position lost over $6 million.
According to Cryptoquant, the Coinbase Premium Index and Gap briefly moved into premium territory on January 14, although they have since returned to discount territory. South Korean exchanges also recorded a 0.95% premium to Bitcoin, according to recent figures.
The Crypto Boom and the Role of Financial Institutions
The renewed enthusiasm for cryptocurrencies, dubbed the “Trump Pump,” combined with a marked increase in institutional investors is contributing to the price rally. Kourosh Khanloo, director of corporate strategy at Tradu.com, said that financial institutions are getting involved in crypto at a rapid pace.
“Institutional participation in crypto is accelerating, which is helping to fuel the strong price increase,” Khanloo noted. “This boom is not only driven by institutional capital flowing into the market, but also by the participation of major financial institutions, which adds significant credibility to the industry and strengthens investor confidence. Even traditionally conservative pension funds are getting involved due to the potential for large returns from Bitcoin,” Khanloo added.
