Small-cap crypto rises ahead of Trump inauguration, bitcoin trades near $100,000

Cryptocurrencies jumped on Thursday as investor appetite shifted to smaller, higher-risk coins ahead of the inauguration of President-elect Donald Trump.

XRP and litecoin were among the biggest drivers, 13% and 22%, respectively, according to Coin Metrics. U CoinDesk Index 20a broad benchmark of the crypto market, gained almost 5%.

Meanwhile, bitcoin was less than 1% near $100,000, after a two-day demonstration of about 7% this week. Ether it fell nearly 3% on Thursday.

“Retail investors [are] looking for opportunities as a new pro-crypto administration prepares to return,” Alexander Blume, CEO of advisory firm Two Prime Digital Assets, told CNBC. “The Trump administration is a rising tide that will raise all crypto boats, and altcoins are seeing some early gains from this.”

Trump’s inauguration is scheduled for Monday.

Trading platform operators Coinbase and robinhood each rose about 2%. Microstrategywhich trades as a bitcoin proxy, was more less than 1%.

“The first 50 days of Trump’s presidency will determine the trajectory of bitcoin in 2025,” said Gracy Chen, CEO of crypto exchange Bitget. “The expectations of the crypto market for his inauguration and the first steps as president are extremely high, which is confirmed by the sensitivity of the prices of the crypto market to statements and appointments made by him in the fourth quarter of 2024”.

During his campaign, Trump promised to set up a crypto advisory board within his first 100 days in office and replace Securities and Exchange Commission Chairman Gary Gensler, who became a notable opponent of the industry during his mandate. The CoinDesk 20 advanced 98% in the month after the November election. In that same period, bitcoin posted a 46% gain.

Another thing driving small-cap crypto action is the possibility that the government’s “anticipated strategic reserve may include other US cryptocurrencies,” such as XRP and Solana symbol, said Blume.

“This is unlikely, [but] it comes as a surprise and fuels speculators to buy the coins,” he said. “The best long-term value for investors will always be in bitcoin.”

Trump also promised to establish favorable regulation to encourage domestic “made in USA” bitcoin mining and launch a national strategic bitcoin stockpile. Investors expect volatility in this year’s leading crypto, along with bitcoin hanged in a shot of war between investors’ concerns about rising inflation under Trump and their optimism about his pro-crypto leadership.