On Tuesday, Bitcoin and various other cryptocurrencies, including the recently launched token associated with Donald Trump, experienced a downturn. This decline followed the U.S. president’s initial policy announcements post-inauguration, which notably omitted any mention of this asset class.
On Monday, Bitcoin, the largest cryptocurrency globally, reached an unprecedented peak of $109,071, coinciding with Donald Trump’s inauguration as the 47th President of the United States. However, the digital currency retraced some of its gains, with its latest trading value recorded at $101,705.40.
The meme coin associated with Trump debuted on Friday night, with its latest trading value reported at $34.4, per the cryptocurrency price tracker CoinGecko. The current price stands at half its peak value of $74.59, recorded on Monday when the valuation surpassed $14 billion. At its launch, the coin was initially priced at approximately $6.5.
On Monday, Trump’s inaugural speech was marked by executive orders and initiatives addressing trade tariffs, immigration, energy deregulation, and a notable reprieve for the widely-used Chinese short-video app TikTok.
However, he failed to address cryptocurrencies, leaving an industry that had eagerly anticipated a shift in U.S. policies under the crypto-friendly President feeling let down.
“In the short term, there is a possibility that this could turn into a sell-the-news event,” stated Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital. He noted that crypto investors had expected specific executive actions to be announced on Trump’s first day in office.
The market is anticipating significant developments regarding a Bitcoin strategic reserve and the potential easing of digital asset regulations. However, these changes appear to be implemented gradually over the coming months rather than in a matter of days. Bitcoin has experienced a notable decline… “Further volatility is anticipated, and a selloff is likely,” Dibb stated.
There was a notable selloff in crypto exchange-traded funds as well. The ChinaAMC bitcoin ETF experienced a decline of nearly 6%.
Trump has initiated personnel changes that are viewed by the industry as promising.
The appointment of Mark Uyeda, a Republican U.S. Securities and Exchange Commission member, as acting chair signals a strategic move within the agency. Additionally, there are plans to nominate former SEC Commissioner Paul Atkins for a permanent leadership role at the organisation’s helm.
Atkins anticipates ending the stringent measures against cryptocurrency initiated by former President Joe Biden‘s Democratic SEC chair, Gary Gensler. Uyeda has voiced concerns regarding the SEC’s lack of clarity on the registration process for crypto companies seeking to comply with the agency’s regulations.
Sources indicate that leading Republican figures within the SEC are preparing to initiate significant changes to the agency’s cryptocurrency regulations, with actions possibly commencing as soon as next week.
In the lead-up to his inauguration, according to ethics experts and industry insiders, Donald Trump’s introduction of the $TRUMP token and the $MELANIA token, named after First Lady Melania Trump, has sparked fresh concerns regarding potential conflicts of interest.
According to its website, CIC Digital, an affiliate of Trump’s business, owns eighty per cent of Trump coin’s tokens, alongside another entity known as Fight, Fight, Fight.
The companies have clarified that they do not consider themselves as investments or securities; instead, they describe their offerings as an “expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP’.”
World Liberty Financial, a distinct cryptocurrency initiative associated with Trump, announced on Monday the successful completion of its initial token sale, which raised $300 million. The company indicated plans to issue additional tokens in the future.
Trump has committed to transferring the management of his assets to his children. However, the cryptocurrency in question is generating specific apprehensions because of its capacity to draw in billions of speculative dollars with minimal transparency swiftly.