Bitcoin touches new high of $109,000, then reverses in volatile session on Trump inauguration day

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The flagship cryptocurrency fell by more than 2% to $103,558.38, according to Coin Metrics, in what appears to have been a "buy the rumor, sell the news" situation. Overnight, it had risen as high as $109,350.72.

Bitcoin gained momentum last week as traders anticipated the inauguration, which many in the crypto community view as a milestone marking a new golden age of more favorable crypto regulations in the U.S. Ahead of the event, speculation circulated that Trump might announce a regulatory executive order on crypto early in his presidency. Enthusiasts hope to see him establish a crypto advisory board and create a national bitcoin reserve or stockpile.

They attracted $31 billion and $7.2 billion in trading volumes, respectively, over the last day on Sunday.

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Meme coins are widely regarded as the most speculative sector within the already volatile cryptocurrency market, but the recent launches of the Trumps' coins over the weekend solidified traders' confidence that the incoming Trump administration will have a positive impact on the industry, according to Joel Kruger, a market strategist at LMAX.

Economist Noelle Acheson, author of the "Crypto is Macro Now" newsletter, essentially agreed, describing the meme drops as a net positive and a sign that he is in favor of new ideas and new markets.

Bitcoin's new record price has the potential to lead to further price increases, up to $130,000, according to LMAX's Kruger.