Jan. 22, 2025

CoinDesk 20 Index: 3,971.73  +2.04%
Bitcoin (BTC): $105,418.04   +0.92%
Ether (ETH): $3,313.36  +0.36%
S&P 500: 6,049.24  +0.88%
Gold: $2,757.11  +0.49%
Nikkei 225: 39,646.25  +1.58%

Bitcoin traded either side of $105,000 during the European morning, showing stability that has some traders optimistic of an attempt at a new record high. BTC has gained about 1% in the last 24 hours to $105,350. With Trump-inauguration-fueled volatility seemingly dying down, traders may be looking for a signal from the new administration to set off the next rally. The broader crypto market, as measured by the CoinDesk 20 Index, added over 2.15% thanks to some sizeable gains from SOL, which is profiting from a renewed surge in the TRUMP token.

President Trump's official memecoin zoomed as much as 25% in the past 24 hours, outpacing bitcoin and other major cryptocurrencies, to reverse losses from earlier in the week. It sits at an $8 billion market capitalization as of Wednesday morning, up nearly 900% since going live. Some observers see TRUMP as a bet on the Republican’s popularity and policies in his term, with ripple effects on how it may shape Web3 and memecoin markets. “Longer term, TRUMP coin could act as a barometer for public sentiment towards Trump’s presidency,” Yat Siu, co-founder and executive chairman of Animoca Brands told CoinDesk. “(However) If the initiative is perceived as a cash grab without further engagement, we may well see a crypto chill for meme tokens, potentially draining attention and liquidity out of the meme space.

Solana validators experienced a record influx of over 100,000 SOL, worth nearly $25.8 million, in fees and tips due to intense trading activity of the TRUMP and MELANIA tokens. The peak occurred on Jan. 20, with validators receiving over 87,000 SOL. The surge in activity led to 24.7 million transaction bundles to ensure success. Bundles on Solana refer to collections of transactions that are grouped together and sent to validators for processing. Tippers are users or bots who include additional fees in their transactions to incentivize validators to prioritize their transactions. The trading activity briefly raised passive income for stakers to 7.14% annually, while inflation rates fell below 5%. TRUMP was trading at $42 on Wednesday morning, up 25% in the past 24 hours, while MELANIA registered slight losses trading at $4.

Long-term holders of bitcoin seem to have ended their selling spree, a change in strategy that's helped convert the psychological $100,000 resistance price into a support level for the first time.

Amid a spike in volatility in the run-up to President Trump's inauguration, BTC has largely held the $100,000 level.

Long-term holders, or investors who have held bitcoin for over 155 days, have been among the biggest contributors to selling pressure on the market, according to CoinDesk research in December. They are deemed "smart money" because they tend to buy when bitcoin prices are depressed and sell into strength, a pattern that's been observed over the past four months.

In September, this cohort held 14.2 million BTC. It now holds 13.1 million BTC. While the investors held back around the start of the year, sales have picked up again in recent days as the price rose, though at a reduced pace.

The trend to watch out for is when they stop selling. This tends to mark a top in the cycle, which has occurred in 2013, 2017, 2021 and 2024.

- Omkar Godbole