Bitcoin traded near $110,000 earlier this week at $109,356 and is currently priced at $106,140, up +3.79% in the past 24 hours, while Ethereum trades at $3,327, up +1.33%. The Fear and Greed Index increased to 84, indicating a bullish market sentiment. January 20, 2025 was a pivotal day for crypto and global politics.
Donald Trump was inaugurated as the 47th President of the United States sparking excitement across markets. Bitcoin surged near its all-time high of $110,000 driven by optimism about pro-crypto policies.
The SEC launched a new task force for regulatory clarity under Hester Peirce. Coinbase CEO Brian Armstrong projected Bitcoin’s future in the multi-millions and Elon Musk’s Department of Government Efficiency DOGE pushed Dogecoin higher. These events solidified crypto’s role in the global financial landscape.
Crypto Fear & Greed Index | Source: Alternative.me
The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. Source: REUTERS
On January 21, 2025, the SEC created a task force to develop clear digital asset regulations. This new crypto task force is led by Hester Peirce which aims to define regulatory boundaries, create registration pathways and refine disclosure frameworks. SEC Commissioner Hester Peirce is known as "Crypto Mom" in the industry. She often opposes SEC enforcement actions on crypto companies.
Acting SEC Chairman Mark Uyeda emphasized that the task force will prioritize clarity and efficiency. This move signals a shift toward a more structured approach to crypto regulation. The SEC’s announcement on Tuesday signals a significant shift in the agency’s approach to crypto regulation under the Trump administration.
“To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way,” the statement said. “Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive. The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud. The SEC can do better.”
The SEC’s new crypto task force will collaborate with the Commodity Futures Trading Commission (CFTC), an agency that has previously vied with the SEC over primary regulatory authority for the crypto industry.
“This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation,” stated Commissioner Hester Peirce.
Trump’s inauguration drove $2.2 billion in weekly crypto inflows setting a year-to-date total of $2.8 billion and pushing assets under management (AUM) to a record $171 billion. Bitcoin dominated with $1.9 billion in inflows aided by demand for spot Bitcoin ETFs from firms like BlackRock and Fidelity. XRP also gained traction securing $31 million in inflows. These numbers highlight strong institutional confidence and growing interest in digital assets.
Bitcoin surged to $109,356 on January 20, 2025, approaching its all-time high. The rally coincided with Trump’s inauguration reflecting market confidence in potential crypto-friendly policies. Institutional interest and inflows into Bitcoin ETFs further boosted momentum. Bitcoin’s performance solidifies its position as the dominant digital asset signaling growing adoption and long-term value.
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The crypto market's total assets under management hit $171 billion. Bitcoin led the way. It rose nearly 20% in one week as bitcoin reached an all-time high near $110,000. This performance boosts investor confidence. Bitcoin's dominance steers the market and promises future growth.
Read more: What Is a Strategic Bitcoin Reserve and How Likely Is It?
Trading volumes of exchange-traded products spiked to $21 billion last week. This was 34% of Bitcoin's trading activity on top exchanges. James Butterfill from CoinShares noted this surge signals more institutional involvement. Investors demand Bitcoin-focused products and the volumes reflect strong market interest and technical adoption.
Source: KuCoin
Bitcoin saw $1.9 billion in inflows last week. The year total is now $2.7 billion. Spot Bitcoin ETFs from BlackRock, Fidelity, Ark Invest and Bitwise secured over $2.1 billion. These inflows defy typical trends in rising markets.
XRP also performed well. It attracted $31 million last week. Since mid-November 2024, it collected $484 million in total inflows. XRP stands out as a strong asset with impressive performance metrics.
The crypto market grows with strong numbers and clear trends. Bitcoin drives progress with large inflows and high trading volumes. XRP remains a noteworthy asset. These developments show institutional confidence and signal more investment opportunities ahead.
Read more: What Is an XRP ETF, and Is It Coming Soon?
Coinbase CEO Brian Armstrong projected Bitcoin would reach multiple millions as institutional adoption grows. Speaking at the World Economic Forum Armstrong highlighted Bitcoin’s role as a global gold standard and its potential to combat inflation. He praised stablecoins for enabling financial inclusion but pointed to Bitcoin’s scarcity as its most valuable asset. Armstrong’s vision reinforces Bitcoin’s role in reshaping global finance.
Speaking on CNBC’s Squawk Box, Armstrong argued that institutional adoption, crypto-related ETF approvals in the US, potential friendly legislation, and a strategic Bitcoin reserve in the US could propel the flagship crypto to new heights in the coming years.
According to Armstrong:
“If the US took that path, probably the rest of G20 would follow. I’ve discussed with a number of finance ministers here in Switzerland from different countries around the world the idea of a strategic Bitcoin reserve. They are getting more interested in it now because the US is looking into it.”
Department of Government Efficiency website. Source: Doge.gov
On January 21, 2025, Elon Musk’s Department of Government Efficiency DOGE launched its official website sparking an 11% surge in Dogecoin’s price. Retail investors saw the agency’s shared name and logo as a bullish signal. Dogecoin briefly broke $0.40 before settling. Musk’s influence continues to drive cultural and financial engagement with Dogecoin further linking the cryptocurrency to major market events.
January 20, 2025 marked a turning point for crypto. Trump’s inauguration Bitcoin’s near-record rally and new regulatory initiatives define a moment of transformation. The SEC’s task force seeks clarity. Armstrong's predictions highlight Bitcoin’s potential and Musk’s DOGE initiative ties cultural momentum to market performance. Record inflows and Bitcoin’s dominance reinforce crypto’s role as a cornerstone of modern finance setting the stage for continued growth and innovation.
