Author: Weilin, PANews
As the inauguration of President-elect Trump on January 20 approaches, leaders in the crypto and tech industries are preparing to participate in a grand celebration. On January 17, a crypto ball will be held in Washington, with David Sacks, the White House's AI and cryptocurrency chief, hosting the VIP reception. Although Trump himself will not attend, top crypto companies and leaders have actively raised funds for this ball and a series of celebration activities, setting a record.
In January, will the market rally brought by Trump occur again? Bitcoin price trend is facing multiple key points, and analysts have made their predictions on the new policies and price trends.
Celebrating Trump's Inauguration, "Crypto Tsar" David Sacks to Host Crypto Ball
On January 20, Trump will be sworn in for his second term as President of the United States, a momentous occasion in American history, and the crypto ball on January 17 has already attracted a lot of attention. In addition to regular tickets, this event is hosted by Trump's super PAC MAGA Inc. for VIP receptions. Although Trump himself will not attend, David Sacks, the White House's AI and cryptocurrency chief, will appear as the host of the VIP event.
Ticket prices for the event are not cheap, with general admission starting at $2,500, but the real draw is the VIP and private packages. For $100,000, VIP guests can network with leaders in the crypto field. The $1 million ticket package offers 4 tickets and an opportunity to dine with Trump himself at a later date.
The event is organized by BTC Inc, with co-hosts including Stand With Crypto, Exodus, Anchorage Digital, and Kraken. The sponsorship package for co-hosting the event costs $5 million. Other sponsorship opportunities range from $150,000 to $1 million. Currently, the event's sponsors include well-known crypto companies such as Coinbase, Sui, MetaMask, Galaxy Digital, Ondo, Solana, Metaplanet, MARA, Satoshi Action Fund, and MicroStrategy.
Multiple Crypto Firms Donate to Trump's Inauguration Committee, Ripple Donates the Most
As part of the new President's inauguration, Trump's inauguration committee's fundraising efforts have also attracted significant participation from the crypto industry. Crypto companies are donating funds to Trump's inauguration committee in an effort to secure a place in the influence of the new administration.
Trump's inauguration committee's fundraising has set a record, raising over $170 million. Donors started receiving notifications in the week of January 10, and some event seats in Washington have already been filled. The inauguration activities will begin on January 17. Donors who contribute $1 million or raise $2 million will receive six tickets to different events, including the January 20 swearing-in ceremony and the "Candlelight Dinner" with Trump and his wife Melania on January 19, which is described as the "pinnacle event" of the weekend. They will also receive two tickets to dine with the elected Vice President JD Vance and his wife.
Among the crypto company donations, Ripple is undoubtedly the leader, donating $5 million worth of XRP to Trump's inauguration fund. After Trump's successful re-election on November 5 last year, the value of Ripple's custodial XRP reserves grew by over $85 billion. Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty have recently met with Trump.
Companies like Robinhood, Coinbase, Circle, and Kraken have also donated to the inauguration committee, contributing $2 million, $1 million, $1 million USDC, and $1 million respectively.
Circle CEO Jeremy Allaire said in an X platform post, "We are proud to have built a great American company, and the committee's acceptance of USDC payments shows how far we have come and the potential and power of the digital dollar."
In addition, a spokesperson confirmed that Moonpay recently donated to support the President-elect's inauguration, but did not disclose the amount. Ondo Finance, headquartered in New York, also donated $1 million to Trump's inauguration in late December.
Trump May Issue Crypto-Related Policies on His First Day, But Implementation Will Take Time
According to Reuters, Trump is expected to issue at least 25 executive orders on his first day in office, some of which may involve crypto-currency policies. According to The Washington Post, Trump may announce the repeal of the controversial crypto accounting policy SAB 121 on his first day, which requires banks to treat their digital assets as liabilities and reflect them on their balance sheets.
However, while the crypto industry is full of expectations for Trump's inauguration, the implementation of policies may not be so swift.
NYDIG, an institution providing Bitcoin financial services, said that fulfilling Trump's campaign promises may take time. NYDIG said that crypto policies will not change immediately after taking office, especially since some key government positions have not yet been filled. "We advise not to have overly high expectations for immediate changes. Key officials still need to be appointed, and once confirmed, they need to build their own teams."
In addition, Trump has not yet announced who will lead the Commodity Futures Trading Commission (CFTC), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC). However, NYDIG expects the heads of these agencies "will be supportive of Bitcoin and cryptocurrencies".
At the same time, whether the market has already "priced in" the policy changes under Trump remains an open question. Analysts Dan Gambardello and Hoeem believe that the market has not yet priced in Trump's inauguration. This means that once Trump officially takes office, the cryptocurrency market may still have room for further upside.
"People think the impact of a pro-crypto Trump administration and governments around the world rushing to buy Bitcoin has been priced in. But in reality, it clearly hasn't been priced in yet," Gambardello posted on X.
Crypto expert Hoeem expressed a similar view: "Trump's inauguration has not been priced in." Hoeem further added: "Trump will revoke any policies that have a negative impact on the crypto market, and double down on any measures that have a positive impact. From day one, he wants the market to keep rising, not only because his team and family are closely connected to the market, but also because of his personal pride."
Bitcoin Price Trend: Mixed Effects of Rate Cut Expectations and New Policies
While the market is anticipating policy changes under Trump, analysts are also closely watching the trend of Bitcoin prices.
As 2025 begins, the crypto trading environment is showing a mixed trend after the December FOMC meeting and the holiday season. According to a report by 10x Research, the first quarter of 2025 may not exhibit the same scenarios as the late January to March or late September to mid-December periods of 2024.
The release of the Consumer Price Index (CPI) data on January 15 has become a key event of focus. The market may see a pullback before the CPI data is released, and if the data is favorable, the market may rebound again.
"Favorable inflation data could reignite optimism and drive a market rebound before Trump's inauguration on January 20," said Mark Thielen, founder of 10x Research. However, the momentum from such a rebound may be short-lived. Thielen added that the market may pull back again before the January 29 FOMC meeting. He predicts Bitcoin will be in the range of $96,000 to $98,000 by the end of January.
PANews analysis released on January 13 stated that although the macroeconomic environment is unfavorable, the rumors of the Silk Road have not gone away, but cryptocurrencies seem to have stabilized, as the support levels of $91,000 and $31,000 remain unchanged. Implied volatility is also at a relatively low level and continues to decline, with only a slight bearish tilt in the front-end market before the Trump inauguration.
Although the volatility market has not reacted much, cryptocurrencies have not yet escaped the predicament. The macroeconomic storm still looms, with the Producer Price Index (January 14), Consumer Price Index (January 15), and Initial Jobless Claims (January 16) about to be released, which could add fuel to the market fire. As the US economy heats up, this week will be a real test for cryptocurrencies to see if they can serve as a hedge against inflation.
