Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.
Trump’s Crypto Influence: BTC and Meme Coins
Meanwhile, bitcoin (BTC) faced selling pressure in recent sessions. President-elect Donald Trump launched the OFFICIALTRUMP (TRUMP) meme coin on Friday, January 17, redirecting investor interest. TRUMP surged 350% to $50.62 on Monday, January 20, while BTC briefly dropped below $100k.
TRUMP reached a Sunday high of $79.35 before tumbling as investors reacted to news of Melania Trump launching her meme coin Melania Meme (MELANIA) on the same day. Despite the pullback, TRUMP ranks 18 by crypto market cap, while MELANIA languishes at #3011.
John E. Deaton remarked on the Trump’s foray into the crypto world, stating,
“Having only spoken to Michael Saylor once, very briefly, at the Bitcoin conference, it’s fair to say I don’t know him personally. Yet, somehow, I’m willing to bet ALL my Bitcoin that Saylor did NOT advise the Trump Team to launch meme coins.”
Trump’s Day-One Executive Orders Crucial for BTC Demand
As Donald Trump’s inauguration looms, speculation about his day-one executive orders will likely intensify. Earlier this month, Anthony Scaramucci said the incoming Trump administration could purchase 500,000 BTC, stating the Senate Banking Committee Chair, Tim Scott, and Treasury Secretary Scott Bessent advocate a US Strategic Bitcoin Reserve (SBR).
Senator Lummis introduced the Bitcoin Act in December. The bill proposes the US government accumulate one million BTC (5% of the total supply) over five years, with a minimum mandatory holding period of 20 years.
A US SBR would zap supply, significantly tilting the supply-demand balance firmly in BTC’s favor.
Deaton recently suggested BTC could reach $1 million if the US government passes Senator Lummis’ bill, saying,
“If the U.S. Government (USG) passes Senator Lummis’ Bill and begins buying BTC, it will no doubt cause other nations to follow suit, just like with gold. It could literally create Nation State FOMO, and if that occurs, $1M per BTC happens a lot faster than people think.”
Another potential day-one executive order could be Trump repealing President Biden’s veto of the SEC’s SAB 121 regulation vote.
Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. The regulation makes it expensive for banks to hold crypto under custody for clients, limiting crypto services and BTC demand.
A repeal could also boost BTC demand.
Bitcoin Price Outlook
On Sunday, January 19, BTC dropped by 2.07%, following Saturday’s 0.15% dip, closing at $101,435. Despite the retreat, BTC closed about $100k for the third consecutive session.
BTC’s price trends hinge on Trump’s day-one executive orders and plans for an SBR.
Repealing the SAB 121 veto, US BTC-spot ETF inflows, and favorable US SBR developments could push BTC toward its record high of $108,231. Conversely, weak support for an SBR on Capitol Hill or a resumption of BTC-spot ETF outflows could drag BTC toward $95k.
As Trump’s inauguration looms, traders should monitor crypto-related chatter from the incoming administration.
