Bitcoin surged to a high of $120,000 on January 20, 2025, marking its second record-breaking peak in a single day after earlier reaching $109,114. The cryptocurrency’s price movement has been marked by major volatility, falling as low as $99,470 before staging multiple recoveries.
The latest surge comes amid heightened attention on cryptocurrencies following incoming President Trump’s growing involvement in the crypto space, which entrepreneur Balaji Srinivasan estimates has pushed Trump’s crypto holdings to represent over 90% of his $59 billion net worth.
Bitcoin hits new ATH
The cryptocurrency market witnessed extreme price swings as Bitcoin moved through multiple technical levels. After dropping to $99,470, Bitcoin first recovered to $109,114, briefly consolidated around $107,000, before launching another upward move to reach $120,000.
The surge aligns with major shifts in the cryptocurrency market, particularly the growing influence of political figures in the space. American entrepreneur Balaji Srinivasan’s analysis shows a major change, noting that President-elect Trump’s cryptocurrency holdings now represent over 90% of his estimated $59 billion net worth.
This quick wealth transformation mirrors early Bitcoin, Ethereum, and Solana investors’ experiences, where crypto assets quickly became the dominant portion of their portfolios.
The potential implications of this shift go beyond mere price action. Srinivasan points out that Trump could theoretically distribute $100 worth of locked TRUMP tokens to each of his 77 million voters through an airdrop, costing approximately $7.7 billion.
The double surge to all-time highs reveals a shifting dynamic in cryptocurrency markets where political influence increasingly affects price movements. The market’s ability to absorb the initial volatility and push to new heights shows growing institutional participation and market maturity. Bitcoin’s price movement from $99,470 to $120,000 within a single day represents one of the largest dollar-value ranges in its trading history.
Srinivasan expects similar move by others
Financial analysts draw parallels between this price action and similar changes in cryptocurrency adoption. As Srinivasan notes, this event may trigger similar moves by other political figures and celebrities. His analysis suggests the market is witnessing a preview of how traditional wealth might shift quickly into cryptocurrency assets.
The implications extend beyond immediate price action. With Trump’s cryptocurrency holdings now estimated at over 90% of his net worth, the incoming presidency marks the first time a world leader holds a majority of their wealth in digital assets. This development could influence policy approaches to cryptocurrency regulation and adoption.
Looking ahead, market observers note that this mix of political power and cryptocurrency wealth creates unprecedented scenarios. The possibility of large-scale token distributions to voters, as highlighted by Srinivasan, suggests new forms of political engagement through blockchain technology.
