Solana Rallies as Crypto Markets Consolidate Following Trump’s Inauguration

Crypto market volatility continued on Wednesday, following President Donald Trump’s inauguration two days earlier, with Bitcoin (BTC) and Ethereum (ETH) recording mild declines.

BTC dropped 2.1% in the past 24 hours, falling to $104,000 from its all-time high of $108,500 recorded on Monday. ETH slipped 2.3% to $3,269, while XRP declined 1.6% to $3.17. Bucking the trend, Solana (SOL) surged 4% to $263. Meanwhile, the total cryptocurrency market cap decreased by 2.7% to $3.74 trillion, according to CoinGecko.

In the past 24 hours, nearly 90,000 traders were liquidated, with the total value of liquidations reaching $173.5 million, according to CoinGlass. Bitcoin (BTC) accounted for approximately $45 million of the liquidations, while Ethereum (ETH) recorded $19 million. Altcoins contributed around $19 million.

Mixed Price Action

Experts say the market's mixed response is largely due to recent regulatory changes and the inauguration of President Trump. This underscores how the ongoing uncertainty regarding government policies can affect the cryptocurrency market.

"A mix of strategic developments and political considerations have definitely made massive impacts,” said Daniel Keller, CEO and co-founder of InFlux Technologies. “But the larger current market trends are influenced heavily by regulatory shifts, with the SEC signaling potential deregulatory actions under new leadership, fostering growth expectations.”

He added that the recent recovery of Bitcoin to over $100,000 highlights strong investor confidence in the market, “especially with the new pro-crypto administration of Trump, which was to be expected."

Institutional Interest and Regulatory Changes

On the institutional front, BlackRock CEO Larry Fink made headlines today with his comments on Bitcoin, suggesting that the cryptocurrency could rise to as high as $700,000 under certain conditions. Fink’s remarks at the World Economic Forum in Davos, Switzerland, come as large financial institutions show growing interest in digital assets.

Meanwhile, the Securities and Exchange Commission (SEC) yesterday announced the formation of a crypto task force to provide more guidance to the rapidly evolving industry.

SEC Commissioner Hester Peirce will lead the new task force. Peirce had previously been considered a potential replacement for former SEC Chair Gary Gensler under the Trump administration.

“This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties,” Peirce said.