The crypto markets reacted with restrained enthusiasm following the inauguration of Donald Trump as president, according to a joint report released by cryptocurrency exchange Bybit and analytics firm Block Scholes.
Despite initial speculation surrounding potential crypto-friendly policies, the event failed to deliver a significant market shift.
The report highlighted a weekend of heightened activity spurred by the launch of meme coins associated with Trump and his wife Melania. These tokens, traded under the names TRUMP and MELANIA, briefly energized derivative markets, hinting at bullish sentiment. However, expectations of Bitcoin-related executive orders or other major policy announcements went unmet, resulting in a decrease in implied volatility even as realized volatility saw a slight uptick.
Solana emerged as an unexpected winner amid the buzz, with its network witnessing a surge in activity driven by the launch of the TRUMP meme coin on Solana-based decentralized exchanges. This spike elevated Solana’s fee generation, positioning it ahead of Ethereum in symbolic significance for the event’s duration.
In derivatives trading, perpetual swap funding rates displayed a neutral-to-bullish tilt, while open interest remained steady. The markets appeared to interpret the inauguration as one of many speculative opportunities rather than a definitive catalyst.
Bitcoin options also reflected earlier anticipation of policy-driven momentum. Reports showed increased activity in short-term options, particularly call buying, as traders speculated on a potential strategic BTC reserve announcement. Although front-end volatility has since normalized, the market continues to favor out-of-the-money call options, underscoring ongoing bullish sentiment among some traders.
This report aligns with recent market trends, highlighting divergent options activity for Bitcoin and Ethereum. Bitcoin’s open interest began rebalancing after December expirations, while Ethereum saw rising demand for call options, signaling anticipation of market disruptions despite current calm. Bitcoin’s implied volatility remains elevated at 57%, reflecting heightened risk expectations. The report attributes Bitcoin’s retreat from the $100,000 mark to macroeconomic uncertainty and investor caution ahead of Donald Trump’s inauguration. Perpetual markets slowed during December, with stable open interest amid reduced trading volumes.
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