This period experienced significant volatility as Donald Trump began his term as the 47th President of the United States. The world’s largest crypto currency, Bitcoin, traded at a high of $109,071 on Monday only to drop sharply to $101,705.40, reported by Reuters.
Other digital assets, including the newly launched Trump-branded token, also faced steep declines. The meme coin, named after Trump, plummeted by nearly 50%—falling from a peak of $74.59 to $34.40 within hours.
Did Trump’s Inaugural Speech Affect Crypto?
The downturn followed Trump’s inaugural speech, which focused on trade tariffs, immigration policy changes, energy deregulation, and TikTok’s reprieve. However, the address made no mention of cryptocurrencies, leaving the market disappointed.
In a statement responding to the incident, Matthew Dibb, Chief Investment Officer at Astronaut Capital said: “I think this is a classic sell-the-news event,” Dibb stated. According to him, crypto investors were in expectation of executive actions or policy announcements favoring digital assets.
“The market was so hopeful for developments such as the ‘strategic reserve’ and regulatory easing,” Dibb said. “Instead, the Bitcoin retreated further back and there will be further volatility.”
Regulatory Expectations and Changes Ahead
The new Trump administration had revived hope for a lot of changes in cryptocurrency regulation. Mark Uyeda has been appointed as the acting chair of the U.S. Securities and Exchange Commission (SEC) by Trump, and former SEC Commissioner Paul Atkins is planned to be nominated by him. This may indicate a change in crypto policy.
Atkins is anticipated to put a halt to the crypto crackdown instigated by former President Joe Biden’s SEC chair, Gary Gensler. Uyeda earlier had criticized that the SEC does not provide clear-cut rules for cryptocurrency companies looking forward to registering.
Trump Branded Tokens And Ethics Issues
Personal involvement by Trump in cryptocurrencies raised ethics concerns. Before assuming the office of presidency, Trump introduced the $TRUMP token and $MELANIA token dedicated to First Lady Melania Trump.
According to its website, 80% of the Trump coin’s tokens are owned by CIC Digital, an affiliate of Trump’s business, and another entity called Fight, Fight, Fight. Critics argue that these associations create potential conflicts of interest.
Market Outlook Remains Uncertain
Although Trump’s administration may eventually encourage crypto-friendly policies, the market is preparing for more short-term volatility. Experts predict any regulatory reforms will emerge gradually, and not as one-time sweeping measures when he first starts his tenure in office.
So far, the lack of immediate action or supportive rhetoric on cryptocurrencies has dampened market enthusiasm as investors watch closely for a sign of policy direction in the coming weeks.
