Bitcoin (BTC) is rallying ahead of President-elect Donald Trump’s inauguration, with renewed U.S. investor interest driving momentum. At the time of writing, the leading crypto is trading at $102,471k, having increased by more than 2% in the last 24 hours.
The most recent data on the on-chain analytics platform CryptoQuant shows recovery in the key Coinbase premium metric. This metric tracks the price difference between Coinbase’s BTC/USD pair and Binance’s BTC/USDT equivalent, reflecting U.S. sentiment.
U.S. investors drive market momentum as Coinbase Premium turns positive
CryptoQuant contributor Burak Kesmeci wrote in one of its Quicktake blog posts that U.S. investors are showing renewed buying interest as BTC continues to surge.
The Coinbase Premium Index (CPI) turned positive for the first time since Jan. 6, suggesting a growing willingness among U.S. investors to increase BTC exposure. Historically, a positive CPI has indicated a market dominated by buyers, while a negative reading suggests selling pressure.
Bitcoin Coinbase Premium Index (CPI). Source: CryptoQuant
Rumors of pro-crypto policies under the incoming Trump administration are fueling optimism. Day-one announcements could set the tone for a new bull market phase for Bitcoin and altcoins.
Kesmeci noted:
With only a few days left until Trump’s inauguration, U.S. investors are clearly taking a bullish stance. CPI data confirms that, on both daily and hourly timeframes, U.S. investors are reclaiming dominance in the market.
– Burak Kesmici
Bitcoin price surpasses $102,000 key level
Ahead of the Jan. 17 Wall Street session—the last before the inauguration—BTC/USD climbed 2%, reaching $102,471, its highest level in 10 days.
Monitoring platform CoinGlass reported $60 million in BTC short liquidations over 24 hours, as bearish traders faced losses amid Bitcoin’s resurgence.
Daan Crypto Trades cited CoinGlass data showing quarterly BTC/USD performance over the years. He noted that Q1 has been good overall for BTC, especially in the post-halving years (2013, 2017, and 2021), and this trend is expected to continue.
BTC’s positive performance comes amid speculation that a strategic Bitcoin reserve could be announced as early as next Monday.
Still, contrary to some community expectations, Polymarket sees only a 37% chance of such a reserve being formed in early 2025.
A few weeks ago, Jeff Park, head of alpha strategies at Bitwise Invest, recently said that there was only a 10% chance of the strategic Bitcoin reserve being formed in 2025. However, he noted that the Bitcoin price might surge to $1 million if it happens.
As U.S. investors ramp up their activity, questions remain about how the incoming administration’s policies will influence Bitcoin’s trajectory. The market’s positive momentum and renewed investor interest could signal the beginning of another significant rally under Trump’s presidency.
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