Bitcoin Hits $109K, XRP Soars 51% & ETFs Boom – What’s Next for Crypto?

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January 30, 2025 by Sadia Ali

Bitcoin hit $109,300 before Trump’s inauguration but dropped to $102,600 as euphoria faded.
XRP gained 51% in market cap, driven by Ripple’s regulatory approval and financial partnerships.
MicroStrategy added over 24,000 BTC in January, maintaining its aggressive accumulation strategy.

January saw intense volatility in the crypto market, accoridng to the recent report from Santiment. The inauguration of Donald Trump as the 47th president of the United States on January 20 brought about hope with his crypto-friendly attitude, especially because his administration reportedly eyed plans for a National Bitcoin reserve that would ramp up innovation around blockchains, sending Bitcoin up to an all-time high of $109,300 ahead of the inauguration.

When the excitement finally cooled, Bitcoin retreated to $102,600 in what freaked out traders. This pullback hit mid- and small-cap altcoins the most, but a handful of assets like Mantra, Ondo Gate, and Jupiter stood their ground and continued the uptick for several sessions. For the first time, there is a pro-crypto presidency, and investors will be eager to know what exactly that means in terms of policy.

XRP Surges 51% on Regulatory Green Light

XRP was one of the best performers in January, whose market capitalization grew 51% in the period. The increase followed final approval from the New York Department of Financial Services of Ripple Labs’ stablecoin, RLUSD. The milestone lifted investor confidence in further adoption of Ripple’s digital payment network.

Ripple also announced several key partnerships that included the ones with Ondo Finance to issue tokenized U.S. Treasury securities on the XRP Ledger. All these set XRP up to become one of the biggest gainers of the month despite mixed sentiment in broader markets.

Bitcoin ETF Trading Volume Hits 10-Month High

The biggest event in the Bitcoin ETF market came in January when the top seven ETFs reached $7.9 billion in trading volume, the highest since March 2024. This growth has reflected institutional interest in the asset despite its recent price retracement.

Elsewhere, Ethereum was unable to hold its support area of $3,000, while Solana saw a sharp dive in sentiment after the network went down and before the inauguration of Trump, including an 18% tumble in price. These tugs at both ends drove a point home on how sensitive the market had presently become to changes in both technology and macroeconomic aspects.

MicroStrategy Expands Bitcoin Holdings in January

MicroStrategy continued with relentless Bitcoin accumulation, adding more than 24,000 BTC in January alone. These purchases have further cemented the bullish outlook by institutions despite the turmoil in the market.

Moreover, the 23rd was the one-year anniversary of Bitcoin ETFs: combined, the top seven ETFs traded an incredible $7.9 billion in volume, a high not seen since March 2024 and evidence that institutions are playing a greater role in the destiny of crypto.

Even with the pullback of Bitcoin, the MicroStrategy buying spreekb means confidence in their value remains unchanged. Now, as February gets underway, there is scrutiny by participants in the market of the more institutional game and confirmation of its translation into sustained momentum for digital assets.

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