Key Points:
- After hitting a record high of $109,071 on Monday, Bitcoin dipped to $101,705 as traders looked for policy clarity.
- The newly launched $TRUMP token dropped by 50%, trading at $34.40, after peaking at $74.59 on inauguration day.
- Donald Trump’s inaugural policies omitted cryptocurrencies, dampening hopes for immediate pro-crypto reforms.
- Trump’s new SEC leadership is expected to reshape crypto regulation, raising long-term optimism.
Bitcoin, the largest cryptocurrency, surged to an all-time high of $109,071 on Monday, coinciding with Donald Trump’s inauguration as the 47th U.S. President. However, by Tuesday, it retreated to $101,705, reflecting market uncertainty as traders awaited clarity on Trump’s crypto policies.
https://x.com/CarlBMenger/status/1881421581513019510
The much-hyped Trump-branded meme coin, $TRUMP, saw an even sharper decline. After skyrocketing to $74.59 on Monday, it dropped by 50% to trade at $34.40, according to CoinGecko. The coin, which debuted at $6.50 just days earlier, had briefly exceeded a $14 billion valuation but has since seen a significant selloff.
No Crypto Focus in Trump’s First-Day Agenda
While Trump rolled out several executive orders covering trade tariffs, immigration, energy deregulation, and even a reprieve for TikTok, cryptocurrencies were notably absent from his agenda.
This omission disappointed many in the crypto community, who had been optimistic that Trump would immediately introduce pro-crypto policies or announce steps toward a Bitcoin strategic reserve.
Matthew Dibb, Chief Investment Officer at Astronaut Capital, described the market’s reaction as a typical “sell-the-news event.”
https://x.com/misterrcrypto/status/1878869370941903057
“Investors were expecting some big moves on day one, like easing crypto regulations or setting up a Bitcoin reserve. Instead, we’ve seen disappointment and volatility,” Dibb said.
He added, “While pro-crypto changes are likely coming, they will be gradual rather than immediate. For now, we’re bracing for more volatility and a potential selloff.”
Optimism Builds on SEC Overhaul
Despite short-term market jitters, Trump’s initial personnel changes have given the crypto industry reasons for optimism.
Trump appointed Mark Uyeda as the acting chair of the U.S. Securities and Exchange Commission (SEC) and plans to nominate Paul Atkins, a former SEC commissioner, for the permanent role. Both are seen as crypto-friendly leaders likely to reverse the strict enforcement policies pursued under former SEC Chair Gary Gensler.
https://x.com/WatcherGuru/status/1881440924724806024
Atkins, in particular, is expected to end the SEC’s crackdown on crypto and provide clearer regulatory guidance for digital asset companies. According to insiders, SEC policy reforms could start rolling out as early as next week.
Trump’s Tokens Raise Ethical Questions
Amid his inauguration, Trump also launched two tokens — $TRUMP and $MELANIA — raising eyebrows over potential conflicts of interest.
Eighty percent of $TRUMP tokens are owned by CIC Digital, a Trump-affiliated entity, and Fight, Fight, Fight, another company linked to Trump’s business. According to its website, the tokens are marketed as a form of political support rather than investments or securities.
https://x.com/Cointelegraph/status/1881366575586152765
Meanwhile, World Liberty Financial, another Trump-linked crypto venture, announced it had raised $300 million in an initial token sale, with plans for additional token offerings.
Critics, however, have raised concerns about the lack of transparency and the ability of Trump-affiliated projects to attract billions in speculative investments.
Market Outlook
While Trump’s administration has yet to clarify its stance on crypto, his promises to make the U.S. the “crypto capital of the world” have kept long-term optimism alive. However, traders should remain cautious, as Bitcoin and altcoins could face more volatility in the absence of immediate policy announcements.
Bitcoin was trading at $101,705 at the time of reporting, while $TRUMP held steady at $34.40.