Crypto and equities markets roared toward new highs on Jan. 21, with Bitcoin making up the bulk of the ground lost during its pullback on Jan. 20.
In the US, stock markets were closed on Jan. 20 in observation of Martin Luther King Jr. day, but traders’ optimism over what is believed to be a markets and business-climate-friendly Trump presidency was reflected right at the opening bell.
The US Dollar Index continued its decline, pulling back 1.27% from a Jan. 15, 2-year high of 110 to currently trade slightly above 108. As 2024 came to a close and right at the start of 2025, market participants’ anxiety over the incoming Trump administration and a handful of other geopolitical tensions were reflected by the sharp rise in US Treasury yields and the DXY. After the smooth transition from former President Biden to a self-declared economics-focused Trump cabinet, the DXY has cooled off, along side Treasury yields.
DXY vs BTC 3-day chart. Source: TradingView
Multiple analysts, CEOs and investment fund managers have gone on the record and shared their optimistic views regarding President Trump’s economic agenda. This optimism can clearly be seen in the S&P 500, DOW and QQQ which have gained 1.21%, 0.82% and 2.79%, respectively. A portion of the rebound in equities can also be attributed to investors’ belief that Trump’s initial plan to implement tariffs on multiple countries has cooled.
SPX, DOW and QQQ 3-day chart. Source: TradingView
Bitcoin strategic reserve or not, BTC bounces back
Following the positive vibes seen across markets, Bitcoin also rallied, gaining 3.8% to reach an intra-day high at $107,240. While BTC (BTC) has failed to eclipse its Jan. 20 all-time high at $109,588, the rebound is likely welcome, especially after anxious investors voiced their disappointment over President Trump making no mention of crypto on Inauguration Day and the absence of an executive order related to a strategic Bitcoin reserve or crypto in general.
Even though Trump may have backtracked on his day 1 promises to the crypto community, many of whom donated millions of dollars to his campaign through lobbies and…
..
