Donald Trump will return next Monday, January 20, to the White House. According to many, this is a positive thing for the cryptocurrency market, but there is also speculation about a new crypto collapse on the same day. This is due to the large number of short-term holders who may sell out of panic if the price of Bitcoin drops too much.
On the other hand, Trump’s inauguration is a positive factor for the cryptocurrency market. As president, Trump could make significant changes to the regulatory environment in the United States, but he may also have plans for a Bitcoin reserve. This could create direct and indirect buying pressure, which could take Bitcoin to a new level.
Threat of new crypto collapse
On a short-term cost basis, $88K (light blue) is an important level to defend. At the beginning of the afternoon, Bitcoin’s price remains fairly stable at $93,900. If the price falls below $88,000, short-term holders may resort to panic selling.
Such a scenario can lead to a domino effect, where the price continues to fall as more people sell out of panic. Naturally, the price will eventually be absorbed by increased buying pressure.
On the other hand, a major rally in cryptocurrencies is possible if the price of Bitcoin remains above $88,000 after Trump’s inauguration on January 20. How quickly interest in cryptocurrencies will grow from then on is still a surprise, but it will be enough to lift Bitcoin to a new all-time high above $108,300.
Another scenario is that investors and traders invest heavily in the run-up to January 20, causing well-known cryptocurrencies to rise before January 20. If this happens, stay on the lookout for a potential news sell-off, which could lead to a crypto collapse on January 20 or in the following days.
Will Bitcoin Drop to $88K in Cryptocurrency Crash?
At the moment, it is unlikely that the price of Bitcoin will fall below $88,000 in the run-up to January 20. Since rising above $90,000 in November 2024, the well-known cryptocurrency has not fallen below this level once. Strong support around $90,000 makes a drop below $88,000 very difficult in the short term.
At the same time, Bitcoin is facing strong resistance at the $97,300 level, which is formed by the 30-day moving average (in yellow). Another strong resistance can be seen around the $102,000 level. This resistance caused a significant decline last Monday.
The Relative Strength Index (RSI) of 45 also makes a sharp decline unlikely. The Relative Strength Index indicates that momentum is neutral with a slight bearish tinge, meaning that BTC is not considered overvalued at the moment. Unless market sentiment turns bearish, cryptocurrencies are expected to rise.
Combine this with the possibility that the market will react very positively to Trump’s inauguration and the coming weeks could be very profitable for investors. Cryptocurrencies are risky, but not having cryptocurrencies in the coming weeks is also risky in a way.
Trump may guarantee a significant rise without a collapse and we will not see today’s levels again for a while.
Which Altcoins Will Rise in the Next Cryptocurrency Rally?
Bitcoin and major altcoins could receive a lot of attention and rise significantly in the coming weeks. However, if we look at smaller altcoins, they may rise faster if they are snapped up by investors.
Below we take a look at 3 small altcoins that are likely to explode in the first quarter of 2025. Small altcoins obviously carry more risk than Bitcoin and better-known cryptocurrencies, but they could also rise much faster if things go well.
Wall Street Call ($WEPE)
Wall Street Call ($WEPE) It is one of the most popular cryptocurrency presales at the moment and has already raised $46.5 million since its launch in December. The advantage of $WEPE is that this meme coin can become more valuable. Additionally, $WEPE has a benefit for token holders.
$WEPE gives you access to an exclusive community of traders of various levels, as well as elite trading insights that anyone within the community can use. These trading insights can help investors make more money during a bull run.
The hottest trend this season? Web bags. 🐸 ⚔️ pic.twitter.com/TB9WmFnrjw
— Wall Street Baby (@WEPEToken) January 11, 2025
You can buy $WEPE today for $0.00036646 each, but this price will rise in the coming days. Another benefit is that you can stake your tokens instantly for a current APY of 27%. The huge popularity of the pre-sale is a good sign that the meme coin could explode after launch.
Now to the Wall Street Baby
Solaxy ($SOLX)
Solana has grown significantly since 2023 and could become larger than ever in 2025. Solaxy ($SOLX) It plans to take Solana to a new level, by launching the first-ever Solana Layer-2 blockchain. Solaxy’s prequel has raised more than $9.8 million so far.
$SOLX can be used within the new blockchain, for example to trade coins on the network and possibly to earn additional money using DeFi (decentralized finance). The advantage of Solaxy is that you can enjoy Solana’s speeds and low costs, without the risk of disruptions and failed transactions.
$SOLX is still for sale today for $0.001598 per token, but its price will continue to rise tomorrow. Solaxy is currently offering attractive deposit bonuses with an APY of 354%, so you can claim additional tokens after the end of the pre-sale.
Now to Solaxy
Best Wallet Token ($BEST)
After raising $7 million in pre-sale, Best Wallet is soon ready to go local Best Wallet Token ($BEST) To start exchanges. This utility token provides benefits to cryptocurrency wallet users and therefore has the potential to become valuable.
As a top wallet user, you can hold BEST to gain various benefits. This includes discounts on in-app actions, benefits from different Best Wallet partners, early access to pre-sales and new launches, but also higher rewards.
Boost your staking rewards with $the best! 💎
a contract $the best Means better betting opportunities. Gain access to higher APY rates with Best Wallet’s staking pool and make your cryptocurrencies work harder for you.
Start now. 📲 https://t.co/he5kzra7TY pic.twitter.com/5PKC2eWXzT
— Best Wallet (@BestWalletHQ) January 10, 2025
The price of $BEST is still low at 2 cents per token, but after the pre-sale, $BEST could become much more expensive. By investing today you will benefit from this fixed rate. Additionally, it is possible to stop early to get an APY of 274%.
Now to the preview of the best wallet