Crypto Daybook Americas: Bitcoin Defends $100K as MicroStrategy Votes on Share Increase
Bitcoin held above $100,000, with VET, ENA, LINK and LDO posting notable gains a day after President Donald Trump bypassed mentioning crypto or a strategic bitcoin reserve in his inauguration speech.
Signals from the bitcoin options market indicate heightened expectations for short-term price turbulence alongside signs of growing risk aversion among traders since Trump’s swearing in, according to Griffin Ardern, head of options trading and research at crypto financial platform BloFin.
That could be due to several reasons, including MicroStrategy’s impending shareholder vote today on expanding its authorized shares to support its bitcoin buying strategy. In addition, the Bank of Japan (BOJ) is expected to increase rates on Friday, which may strengthen the yen. The late July BOJ rate hike torched the currency’s rally, destabilizing risk assets, including cryptocurrencies.
There’s also uncertainty stemming from Trump’s plans to impose tariffs of up to 25% on Canada and Mexico and the looming debt ceiling although, historically, the latter has not had a significant bearish impact on risk assets.
“Markets received a stark reminder of life under President Trump, with more volatility-inducing rhetoric,” QCP Capital said,.
Still, observers remain optimistic.
“Despite a generally disappointing first day for cryptocurrencies under the new administration, Bitcoin managed to remain firmly above $101K, sidestepping the feared ‘sell-the-news’ effect,” Valentin Fournier, an analyst at BRN, noted. Fournier added that while regulatory progress and adjustments to national reserves may take time, conditions are expected to improve in the coming weeks.
The debut of the TRUMP memecoin over the weekend marked “a fundamental shift in the American digital asset landscape, ultimately attracting new buyers, particularly into BTC and SOL,” according to Laurent Benayoun, CEO of Acheron Trading.
“This phenomenon can be seen as a dual narrative: a significant value creation in TRUMP, initially driven by intra-market rotation, which later sparked fresh capital inflows as fundamental investors recognized the broader positive catalysts for digital assets,” Benayoun said. Stay alert!
BY: Omkar Godbole
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.
