BTC Breaks $105K: Is the ‘Trump Pump’ or Institutional Adoption Fueling a $3.63T Crypto Economy?

BTC Breaks $105K: Is the ‘Trump Pump’ or Institutional Adoption Fueling a $3.63T Crypto Economy?

Crypto Sector Value Grows Amid Growing Institutional Confidence and Trump Speculation

Bitcoin (BTC) reached an intraday peak of $105,246 per coin on Friday, marking a 5.7% appreciation against the U.S. dollar. The collective valuation of the crypto economy expanded by 3.12%, climbing to $3.63 trillion. This milestone comes just days ahead of President-elect Donald Trump’s January 20, 2025, inauguration, sparking speculation about potential shifts in U.S. crypto policy, including the possibility of a strategic bitcoin reserve.

Market Highlights

Ethereum (ETH) followed suit with a modest 2.8% gain, while Dogecoin (DOGE) stood out among the top ten cryptocurrencies with an 8.34% increase. Among smaller assets, SPX6900 (SPX) led gains with a 41.03% surge, followed by Chex Token (CHEX) at 24.63%, and Fartcoin (FARTCOIN) at 22.2%.

Other significant gainers included:

• FLR: +21.76%

• POPCAT: +20.07%

• OKB: +17.79%

However, not all cryptocurrencies shared in the day’s gains. ai rig complex (ARC) suffered a sharp 17.85% drop, while freysa ai (FAI) and XDC declined by 14.2% and 12.47%, respectively. Other notable losers included AI16Z (-11.98%) and AIXBT (-7.15%).

Liquidation Frenzy in Derivatives Markets

The surge in market activity led to $270.83 million in liquidations across crypto derivatives markets. Short positions bore the brunt of these losses, accounting for $159.90 million, including $75.27 million in bitcoin shorts. Binance recorded the single largest liquidation, where a bitcoin position lost over $6 million. In total, 87,321 traders were liquidated over the past 24 hours.

Institutional Adoption vs. ‘Trump Pump’

This wave of enthusiasm has been attributed to two primary factors: growing institutional adoption and speculation around a favorable crypto policy under the incoming Trump administration. According to Cryptoquant data, South Korean exchanges currently show a 0.95% BTC premium, reflecting increased demand in Asian markets.

In a statement to Bitcoin.com News, Kourosh Khanloo, director of corporate strategy at Tradu.com, emphasized the accelerating pace of institutional adoption.

“Institutional adoption of crypto is accelerating rapidly, driving a notable rise in prices,” Khanloo remarked. “This surge is fueled not only by the influx of funds flowing into crypto markets via institutional channels but also by the involvement of major financial institutions, which lends significant credibility to the industry and strengthens investor confidence. Even traditionally risk-averse pension funds are getting in on the action, enticed by the Bitcoin boom and potential lucrative returns on offer,” he added.

Conclusion

Bitcoin’s ascent past $105K and the broader crypto market’s valuation surge to $3.63 trillion underscore the dynamic interplay between institutional confidence and geopolitical speculation. Whether the “Trump Pump” narrative or institutional backing proves to be the dominant driver remains to be seen, but the trajectory signals a pivotal moment for the future of cryptocurrency.