- Bitcoin spot flows remained positive even after Trump’s inauguration.
- At the same time, MicroStrategy made another large Bitcoin purchase for over $100,000.
Bitcoin [BTC] This week’s question may provide a preview of what to expect in the rest of 2025.
Many may not realize this, but President Trump’s inauguration could be one of the most important developments for the crypto market in history.
For the first time in history, the US has a pro-crypto president, and things are looking a lot brighter for the crypto market. Reports of Gary Gensler’s resignation as chairman of the SEC were also welcomed.
Even more interesting is that the market reacted positively to Trump’s inauguration. Bitcoin managed to rally to a new ATH on the same day, and this spoke volumes about the state of demand.
Institutional buyers were particularly impressed, with spot ETF flows surging by more than $1 billion on January 17 – the first time ETF inflows have exceeded $1 billion so far this year.
Spot ETF inflows reached $803.6 million the day after Trump’s inauguration. This was a clear sign that investors were optimistic about the new government.
Why the Bitcoin Optimism?
Trump spoke out about his support for crypto during his campaign and since his election victory. However, nothing proved this more than the launch of its own official TRUMP memecoin just three days before the inauguration.
Trump wants the US to be number one when it comes to adopting cryptocurrencies and blockchain technology. So much so that he believes Bitcoin could help offset the runaway US national debt.
Analysts are watching more and more Bitcoin as a safe haven against the looming global debt crisis.
This could possibly be why the Trump administration is pushing to embrace BTC as a reserve asset.
The new government is expected to streamline regulations around crypto, and it is expected that they will be soft or favorable crypto laws.
These developments are expected to pave the way for more adoption, especially on the institutional side of things. This means that Bitcoin demand in 2025 could potentially rival that of 2024 as sentiment becomes more bullish.
MicroStrategy was at the forefront of Bitcoin demand in 2024. Interestingly, the same company just announced a purchase of 11,000 BTC for $101,191 per coin.
Read Bitcoin’s [BTC] Price forecast 2025–2026
The new purchase aligns with recent institutional demand seen thanks to spot flows from Bitcoin ETFs.
While this does not necessarily protect Bitcoin from possible unexpected negative consequences, it does highlight the prevailing sentiment as a result of recent developments.