Bitcoin, Ethereum, Dogecoin Retrace From Pre-Inauguration Highs As Trump Skips Crypto Mention: Analyst Highlights BTC Consolidation In $101K-$106K Range

Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) have all experienced a retrace from their pre-inauguration highs following Donald Trump's inauguration speech, which notably omitted any mention of cryptocurrency. Market sentiment and investor expectations played a significant role in the price movements of these cryptocurrencies, with many anticipating pro-crypto policies from the incoming Trump administration.

Bitcoin, which had recently touched a fresh high of $109,000, experienced a modest 2.2% decline over the past day, highlighting its relatively stable performance amid broader market weakness. The lack of crypto mention in Trump's speech led to a sell-off, with traders exhibiting increased risk aversion and shifting capital toward stablecoins. Bitcoin's 7-day skew turned positive, signaling that calls were now trading at a premium to puts, indicating an increased demand for upside leverage as traders positioned for a bullish market response.

Ethereum, the second-largest cryptocurrency by market capitalization, also experienced a retrace, dropping over 3.5% in 24 hours. The broader cryptocurrency market, including Ethereum, has been driven by anticipation of pro-crypto policies under the Trump administration. However, the absence of crypto mention in Trump's speech led to a shift in sentiment and a subsequent sell-off in major cryptocurrencies.

Dogecoin, a popular meme coin, also experienced a retrace, declining more than 5% over the same period. The retrace in Dogecoin's price can be attributed to the broader market weakness and increased risk aversion among traders. Dogecoin's price had surged in the days leading up to the inauguration, driven by optimism about Trump's potential pro-crypto policies.



Analysts have highlighted the importance of Bitcoin's consolidation in the $101K-$106K range, as this could indicate a potential reversal in the market's downward trend. According to Tom Trowbridge, Co-Founder & CEO of Fluence, "Turning the pages with the new administration, we’re seeing a stark shift from outright hostility to full support. The appointment of David Sacks as the 'crypto czar' clearly signals a pro-crypto stance. The Crypto Reserve has the potential to set off a race among other countries to accumulate Bitcoin and other assets, and the US’s crypto-friendly policies will likely drive pro-crypto legislation globally."



In conclusion, the absence of crypto mention in Trump's inauguration speech has led to a retrace in the prices of Bitcoin, Ethereum, and Dogecoin. Market sentiment and investor expectations played a significant role in the price movements of these cryptocurrencies, with many anticipating pro-crypto policies from the incoming Trump administration. Analysts have highlighted the importance of Bitcoin's consolidation in the $101K-$106K range, which could indicate a potential reversal in the market's downward trend. As the market continues to evolve, investors and traders should stay informed about the latest developments and expert analysis to make informed decisions.