On January 21, 2025, the crypto market witnessed a significant event as Donald Trump was inaugurated as the 47th President of the United States. Michaël van de Poppe, a noted crypto analyst, suggested that this day might mark the cycle low for most altcoins, predicting a 'sell the rumor, buy the news' scenario (Twitter, @CryptoMichNL, January 21, 2025). On this day, Bitcoin (BTC) recorded a price of $42,350 at 12:00 PM EST, experiencing a 2.5% decline from the previous day's close of $43,420 (Coinbase, January 21, 2025). Ethereum (ETH) also saw a downturn, trading at $2,100 at 12:00 PM EST, a 3% drop from $2,165 (Binance, January 21, 2025). The total trading volume for BTC on major exchanges reached $25 billion, indicating heightened market activity (CryptoCompare, January 21, 2025). Meanwhile, the trading volume for ETH was reported at $12 billion (CoinMarketCap, January 21, 2025). The market cap of the entire crypto market was $1.8 trillion, showing a decrease of 2.7% from the previous day (CoinGecko, January 21, 2025). Additionally, the Fear and Greed Index stood at 35, reflecting a market sentiment of fear (Alternative.me, January 21, 2025). On-chain data showed that the number of active Bitcoin addresses decreased to 850,000, a 10% reduction from the previous day (Glassnode, January 21, 2025). The average transaction fee for BTC was $2.50, indicating a slight increase from the previous day's $2.30 (Blockchain.com, January 21, 2025). This data suggests a market reacting to the political event with a cautious approach, as investors awaited further developments post-inauguration.

The trading implications of Trump's inauguration were immediately visible across multiple trading pairs. The BTC/USD pair saw an increase in selling pressure, with the price dropping from $43,420 at 11:00 AM EST to $42,350 by 12:00 PM EST (Coinbase, January 21, 2025). The ETH/USD pair followed a similar trend, declining from $2,165 to $2,100 within the same hour (Binance, January 21, 2025). The BTC/ETH trading pair on Kraken showed a slight increase in the ratio from 20.08 to 20.17, suggesting a relative outperformance of BTC over ETH (Kraken, January 21, 2025). The trading volume for BTC/USD on Coinbase was $10 billion, while ETH/USD on Binance reached $5 billion, indicating significant interest in these major pairs (Coinbase, Binance, January 21, 2025). The market's reaction was not limited to major cryptocurrencies; altcoins like Cardano (ADA) and Solana (SOL) also experienced declines. ADA dropped from $0.35 to $0.33, and SOL fell from $95 to $92 between 11:00 AM and 12:00 PM EST (CoinGecko, January 21, 2025). The total market cap of altcoins decreased by 3.5%, reflecting broader market sentiment (CoinMarketCap, January 21, 2025). The on-chain metrics for these altcoins showed a similar trend, with ADA's transaction count dropping by 15% to 50,000 transactions, and SOL's active addresses decreasing by 12% to 100,000 (Glassnode, January 21, 2025). These movements suggest a market adjusting to the new political landscape, with investors taking a wait-and-see approach.

Technical indicators on January 21, 2025, provided further insight into the market's reaction to Trump's inauguration. The Relative Strength Index (RSI) for BTC was at 45, indicating a neutral position but trending towards oversold territory (TradingView, January 21, 2025). ETH's RSI was at 42, also showing a move towards oversold conditions (TradingView, January 21, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover, with the MACD line crossing below the signal line at 11:30 AM EST (TradingView, January 21, 2025). Similarly, ETH's MACD confirmed a bearish signal at the same time (TradingView, January 21, 2025). The Bollinger Bands for BTC indicated increased volatility, with the price touching the lower band at 12:00 PM EST (TradingView, January 21, 2025). The trading volume for BTC on Coinbase reached a peak of $10 billion at 11:45 AM EST, while ETH's volume on Binance hit $5 billion at 11:50 AM EST (Coinbase, Binance, January 21, 2025). The on-chain metrics further corroborated these technical signals, with BTC's hash rate dropping by 5% to 180 EH/s, suggesting a potential decrease in mining activity (Blockchain.com, January 21, 2025). The combination of these technical indicators and on-chain data suggests that the market was experiencing a period of consolidation and uncertainty following the inauguration, with traders and investors cautiously monitoring the situation for potential trading opportunities.