Crypto markets surge before Trump's inauguration, Bitcoin nears $100,000.

On Thursday, cryptocurrencies surged as investors shifted their focus towards smaller, higher-risk coins prior to President-elect Donald Trump's inauguration.

According to Coin Metrics, litecoin and bitcoin were among the largest gainers, with litecoin up 13% and bitcoin up 22%, respectively. Additionally, the CoinDesk 20 index, a broad crypto market benchmark, experienced a nearly 5% increase.

Near $100,000, Meanwhile, fell nearly 3% on Thursday, despite a two-day rally of about 7% this week.

"As a new pro-crypto administration prepares to take office, retail investors are seeking investment opportunities in the crypto market, according to Alexander Blume, CEO of Two Prime Digital Assets. The Trump administration's stance on crypto is seen as a positive development, with altcoins experiencing early gains as a result."

Trump's inauguration is slated for Monday.

Bitcoin proxy trading platform operators rose roughly 2%, while the platform itself was up less than 1%.

"Gracy Chen, CEO of crypto exchange Bitget, stated that the first 50 days of Trump's presidency will determine bitcoin's trajectory in 2025. The crypto market's expectations for his inauguration and first steps as president are extremely high, which is confirmed by the sensitivity of crypto market prices to statements and appointments made by him in the fourth quarter of 2024."

Trump pledged to establish a crypto advisory council and remove Gary Gensler as Securities and Exchange Commission chair during his campaign. Following the November election, the CoinDesk 20 advanced by 98%, while bitcoin gained 46% in the same month.

The possibility that the government's "expected strategic reserve may include other 'American' cryptocurrencies," such as XRP and Blume, is another factor driving the action in small-cap cryptocurrencies, according to Blume.

"This is unlikely, but it comes as a surprise and is fueling speculators to buy the coins," he said. "The best long-term value for investors will still be in bitcoin."

Trump has pledged to create favorable regulations to boost domestic "made in the USA" bitcoin mining and establish a national bitcoin stockpile. Investors anticipate volatility in the leading cryptocurrency this year, as bitcoin struggles between investors' fears of inflation under Trump and their excitement about his pro-crypto leadership.