Bitcoin crosses $100,000 again: Can Trump’s inauguration spark a new all time high?

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After weeks of quiet, Bitcoin has once again smashed the $100,000 mark. With $1.54 billion in $120,000 call options and Trump-era crypto speculation, is the stage set for a massive rally?

BTC breaches $100,000, again

Bitcoin has been stealing the spotlight once again. After weeks of playing it safe in the $92,000 to $98,000 range, BTC has surged past the $100,000 mark, trading at $101,700 as of Jan. 7, still about 6% shy of its all-time high of $108,268.

Adding fuel to the fire, data shows that traders are piling into $120,000 call options with a staggering notional open interest of $1.56 billion as of Jan. 7, suggesting that traders are banking on a rally that could push Bitcoin to new heights.

A call option gives someone the right (but not the obligation) to buy Bitcoin at a specific price later. It’s basically a bet that prices will go higher. 

Why all this optimism? As President-elect Donald Trump prepares to take office in the coming days, speculation is swirling that his administration might usher in a more crypto-friendly era. 

So, what does all this mean for Bitcoin’s future? Let’s dive deeper into the data, dissect the market sentiment, and explore what experts believe could unfold in the days and weeks to come.

What Trump’s inauguration could mean for crypto

As Trump prepares to be sworn in on Jan. 20, it’s shaping up to be a key moment for the digital asset industry, setting the stage for changes in how crypto is governed in the U.S.

One of the immediate shake-ups will come from the resignation of SEC Chair Gary Gensler, a polarizing figure in the crypto community known for his tough stance on digital assets. 

SEC’s current approach under SAB 121 requires publicly traded banks to record crypto holdings as liabilities, making large-scale crypto custody a financially unattractive endeavour.

While Congress voted to scrap SAB 121 last year, the effort was vetoed by President Biden. Gensler’s departure could lead to a dramatic policy shift, as he is set to be replaced by former SEC Commissioner and crypto-friendly Paul Atkins.

Meanwhile, Congressman French Hill has indicated that Republican leadership plans to prioritize a comprehensive regulatory framework for crypto. This effort builds on the FIT 21 bill passed by the House in 2024, which aimed to end the tug-of-war between the SEC and the Commodity Futures Trading Commission over who gets to regulate crypto. 

While FIT 21 was hailed as a landmark moment, it didn’t come without controversy. Some industry insiders felt the bill was rushed and overly restrictive, particularly in its treatment of decentralized finance. 

Republican leaders have hinted that they may scrap FIT 21 and start fresh, with a focus on innovation while addressing concerns raised by the DeFi community. 

But beyond the immediate policy shifts, Trump’s inauguration could signal a key shift in tone. His campaign rhetoric positioned him as a “crypto president,” and the industry is eager to see if he’ll follow through on promises like establishing a U.S. Bitcoin reserve or creating a federal crypto council.