Bitcoin Volatility Persists as Traders Await Trump’s Policy Moves

Crypto market volatility persisted on Thursday, driven by President Donald Trump’s inauguration earlier this week and ongoing uncertainty surrounding cryptocurrency policies, as Bitcoin rose to $105,000.

BTC rose 0.4% in the past 24 hours to $105,000, slightly below its all-time high of $108,500 set on Monday. ETH fell 1.3% to $3,225, while XRP dropped 2.9% to $3.08. Solana (SOL) also declined 3%, trading at $248. The total cryptocurrency market cap decreased by 1.5%, reaching $3.73 trillion, according to CoinGecko.

Over the past 24 hours, 132,653 traders were liquidated, with total liquidations amounting to $341.72 million, according to CoinGlass. BTC accounted for roughly $111 million of the liquidations, while altcoins contributed $46 million, and ETH added approximately $38 million.

Political Influence

The volatility underscores how uncertainty surrounding government policies can have a significant impact on the cryptocurrency market.

Senator Cynthia Lummis’ (R-WY) post on X this morning, which teased “big things are coming,” may have further influenced Bitcoin’s price action as speculation around a potential U.S. strategic Bitcoin reserve gained traction.

The news Lummis was referring to was Thursday’s vote to appoint her as chair of the newly established Digital Assets Subcommittee, a body focused on overseeing the cryptocurrency space.

Bitcoin Rollercoaster

BTC reacted to Lummis' post, rising 3% from $102,000 to $105,000 before correcting to $103,000 after the subcommittee vote announcement. However, experts noted that it's difficult to definitively link the price movements to such events.

“It’s possible that crypto assets fell slightly due to unmet expectations for immediate pro-crypto action from President Trump,” said James Toledano, COO at Unity Wallet. “However, this is difficult to prove given the price movement was well within normal crypto movements.”

He noted that many factors coalesce to impact the price of crypto assets positively or negatively. “Trump is a single factor, and the U.S. is just one jurisdiction,” Toledano said.