Key Points
Bitcoin’s value has risen above $96,000, bouncing back from its drop to $92,000 on December 31.
This recovery is seen across the crypto markets, with altcoins also showing signs of recovery.
There is a growing anticipation for pro-crypto regulation and policy in the U.S in 2025.
Impact of Upcoming Inauguration
The impending inauguration of President-elect Donald Trump, which is less than three weeks away, could influence crypto markets and altcoin prices.
Three tokens where price fluctuations are expected are Bitcoin (BTC), Solana (SOL), and Ripple (XRP).
On-chain metrics suggest potential gains in Bitcoin, XRP, and Solana.
Open interest, a measure of interest and demand among traders, has increased for these three tokens since December 31, as per data from Santiment.
Derivatives traders’ interest in these tokens has risen in the first three days of January, supporting a bullish outlook.
Solana’s social dominance is trending upwards, with increasing mentions across social media platforms and a steady rise in SOL traded volume.
On the other hand, XRP has seen a decrease in large volume transactions, indicating a potential reduction in profit-taking.
Bitcoin’s funding rate has been positive for the last ten days of December and the first three days of January 2025, suggesting an optimistic outlook among derivatives traders.
However, institutional capital inflow to Bitcoin is declining, as shown by data from Farside investors.
MicroStrategy, one of the largest public holders of Bitcoin, has seen nearly a 44% decline in its shares.
Solana and XRP are facing challenges amidst hopes of ETF approval.
Solana’s meme coin narrative is losing steam, with a decline in airdrops and reduced network activity.
Meanwhile, the SEC’s appeal in the Ripple lawsuit continues, with traders hopeful for a resolution with a new SEC Chair.
Technical analysis and targets suggest that Bitcoin is in an upward trend.
Bitcoin could find support in the Fair value gap between $81,500 and $89,376 if a correction occurs.
XRP is nearly 20% away from its 2024 peak of $2.9092 and faces resistance at the December 9 high of $2.6076.
Solana’s weekly chart shows the altcoin in an uptrend and close to $231.62, the 78.6% Fibonacci retracement level of its rally.
However, Pump.fun, the launchpad on Solana, continues to offload its SOL token holdings, which could increase selling pressure on the altcoin.
