Bitcoin surges above $100,000, become Trump’s inauguration

Bitcoin has surged above the $100,000 mark, trading at around $102,000—a gain of over 4% in a single day. This rally is driven by the “January effect” as investors return from the holidays and inject fresh capital into the market. Investors are also closely watching the upcoming inauguration of Donald Trump on January 20 and the departure of SEC Chair Gary Gensler.

The surge in the crypto market is fueled by optimism surrounding Trump’s potential impact on the sector. Many investors hope he will fulfill his promises to foster growth in the crypto space, including making the U.S. the global hub for crypto mining and establishing Bitcoin as a reserve asset. While the specifics of his plans remain to be seen, for now, investors are celebrating Trump’s return to the White House.

How Polygon Bridge Supports Bitcoin’s Growth in the Broader Crypto Ecosystem

While Bitcoin remains the flagship cryptocurrency, its scalability and interoperability with other blockchain networks are critical to ensuring its long-term success. This is where platforms like Polygon Bridge come into play.

The Polygon Bridge is a vital tool that enables the seamless transfer of assets between the Ethereum network and Polygon, a Layer 2 scaling solution. With increasing congestion and high transaction fees on the Ethereum network, Polygon has become a popular choice for developers and users seeking faster, cheaper transactions.

Although Bitcoin itself doesn’t operate directly on Polygon, wrapped Bitcoin (WBTC) and other Bitcoin-backed assets are frequently transferred across networks using bridges like Polygon. This helps integrate Bitcoin into decentralized finance (DeFi) ecosystems, expanding its utility beyond a store of value and making it more accessible to a wider range of applications.

For instance, users can bridge their Bitcoin to Polygon and use it in DeFi protocols for lending, borrowing, and yield farming. This interoperability enhances Bitcoin’s role in the broader crypto economy, increasing demand and use cases for the asset.

As Bitcoin continues to grow in value, platforms like Polygon Bridge will be essential for ensuring that Bitcoin can interact seamlessly with other blockchain networks, further solidifying its position in the digital asset space.

Bitcoin ETFs are back in action
It’s not just Bitcoin that’s seeing a boost. The spot Bitcoin ETFs (exchange-traded funds) are also gaining momentum. After some hesitation during the holiday season, investors have resumed pouring money into these funds. On January 3rd, a total of $908 million flowed into Bitcoin ETFs, with Fidelity’s FBTC leading the way with $357 million in inflows, followed by BlackRock’s IBIT with $253 million.

Increased Volatility: A massive price surge would likely lead to wild market swings, creating both high-risk opportunities and potential losses for traders relying on short-term price movements.

New All-Time Highs: Traders holding Bitcoin could see huge profits, but the high price may also discourage new entrants from investing in BTC and shift their focus to altcoins with lower entry points.

Higher Liquidity: A $1.5 million Bitcoin would attract more institutional investors, creating higher liquidity and tighter spreads, making trading more efficient.

Other major cryptos are on the rise, too
In addition to Bitcoin, Ethereum’s native token, Ether, rose over 2% in a day, trading at around $3,600. Solana, Dogecoin, and Cardano also saw gains, up 2.4%, 1.5%, and 2%, respectively, reflecting growing optimism across the crypto market.

MicroStrategy buys 1,070 Bitcoin
The surge in Bitcoin’s price has sent crypto stocks higher as well. Crypto exchange Coinbase (COIN) shares jumped 6.3%, while MicroStrategy (MSTR) rose 5.5% following reports of its latest Bitcoin purchase. Today, the business intelligence firm bought 1,070 coins for approximately $101 million. This acquisition brings MicroStrategy’s total Bitcoin holdings to 447,470 coins, valued at $45.67 billion at the current price level.