Cryptocurrency Prices Drop as Trump Inauguration Fails to Boost Market Sentiment

The major cryptocurrencies did not perform as expected on Monday following Donald Trump's inauguration as the 47th president of the United States.

Cryptocurrency	Gains +/-	Price (Recorded at 7:30 p.m. ET)
Bitcoin BTC/USD	+1.57%	$101,346.96
Ethereum ETH/USD	+1.75%	$3,252.20
Dogecoin DOGE/USD	-0.76%	$0.3515

What Happened: Bitcoin struggled after touching a high of $109,000 just before the inauguration, eventually falling to an intraday low of $100,626. This downward trend indicates that the anticipation of a market rally did not materialize.

Ethereum faced a similar downturn, retracting from a high of $3,425 to a low of $3,228.

The lack of mentions of cryptocurrency or Bitcoin in Trump’s inauguration speech likely dampened enthusiasm among crypto investors.

Additionally, the legal challenges facing the newly established Department of Government Efficiency, now led by Elon Musk, also influenced sentiment around Dogecoin.

A considerable amount of $756 million was liquidated across the cryptocurrency market in the last 24 hours, with around $500 million of this occurring on bullish positions.

The Open Interest for Bitcoin increased by 1.36% within the same timeframe, aligning with a slight rise in its spot price.

Nonetheless, more than 51% of derivative traders have opened short positions in Bitcoin, signaling expectations for further price corrections in the near future.

The Crypto Fear & Greed Index indicated that market sentiment remains in the "Extreme Greed" zone.

Top Gainers in the Last 24 Hours

Cryptocurrency	Gains +/-	Price (Recorded at 7:30 p.m. ET)
Raydium (RAY)	+14.71%	$7.36
ai16z (AI16Z)	+13.29%	$0.9323
Lido DAO (LDO)	+12.13%	$1.82

The global cryptocurrency market capitalization stood at $3.53 trillion, reflecting an increase of 1.36% over the past 24 hours.

Meanwhile, stock futures rose during Monday evening as President Trump commenced his second term. At 7:30 p.m. EDT, the Dow Jones Industrial Average Futures rose by 241 points, or 0.56%. The S&P 500 futures increased by 0.51%, while Nasdaq 100 Futures climbed by 0.56%.

The New York Stock Exchange and the Nasdaq were closed on Monday in honor of Martin Luther King Jr. Day, with trading set to resume on Tuesday.

Analyst Insights

Recognized cryptocurrency analyst Rekt Capital emphasized the importance of Bitcoin finding support at the $101,000 mark, stating, "This confluent support may serve as a floor for future price action, enabling consolidation within this current $101,000-$106,000 range."

A fellow on-chain analyst, Ali Martinez, pointed to Ethereum’s support range of $2,700 to $3,000. Martinez stated, "This demand area must hold to maintain ETH's bullish outlook. A breakdown could invalidate the positive momentum."

Photo by Avi Rozen on Shutterstock

After the inaugural events, the market continues to watch for key developments that may impact cryptocurrency trading and investor sentiment.

Bitcoin, Ethereum, Dogecoin