The inauguration of Donald Trump as the 47th President of the United States has had a noticeable impact on the volatile cryptocurrency market. Following Trump’s swearing-in ceremony, Bitcoin and other digital assets, including a newly launched meme coin branded with Trump’s name, experienced significant declines.
Bitcoin, which had enjoyed a promising surge with an all-time high of $109,071 on Monday, quickly retraced its steps. As of the latest reports, the world’s largest cryptocurrency was trading at $101,705.40. Despite its strong start, the sharp pullback has sparked concerns among investors.
The meme coin named after Donald Trump also saw a dramatic drop in value, plummeting nearly 50%. The coin’s valuation, which peaked at $74.59, has now fallen to $34.4. This sharp drop is being closely watched by crypto enthusiasts and analysts alike.
Lack of Cryptocurrency Focus in Trump’s Inaugural Speech
The steep decline in the crypto market occurred shortly after Trump’s inaugural speech, which highlighted his plans for trade tariffs, immigration reforms, and energy deregulation, but conspicuously omitted any mention of cryptocurrencies. This absence has left many in the crypto community disappointed, as there had been high expectations for the new administration to introduce favorable policies for digital assets.
Matthew Dibb, chief investment officer at Astronaut Capital, noted that the market had hoped for executive actions to be rolled out during Trump’s first day in office, especially regarding a Bitcoin strategic reserve and loosening of regulations. However, he speculated that such developments would be gradual rather than immediate, which has fueled further volatility and likely selloffs in the crypto space.
Trump’s Administration and the Future of Cryptocurrency Regulation
Despite the current uncertainty, Trump’s administration could potentially bring more favorable policies for cryptocurrencies. He has appointed Mark Uyeda as acting chair of the U.S. Securities and Exchange Commission (SEC) and plans to nominate Paul Atkins for the permanent role. Atkins is expected to reverse the stricter stance on cryptocurrencies enforced during Joe Biden’s presidency, which could lead to more regulatory clarity for crypto businesses.
Concerns Over Conflicts of Interest
Trump’s involvement in the cryptocurrency market has raised ethical concerns. His launch of the $TRUMP token and the $MELANIA token, which are associated with his business ventures, has led to questions about potential conflicts of interest. The $TRUMP token is primarily owned by CIC Digital, an affiliate of Trump’s business, and another entity, Fight, Fight, Fight.
While Trump’s presidency may hold promise for crypto investors, the lack of immediate action and the ethical concerns surrounding his involvement in the market have created a cloud of uncertainty. The crypto market, particularly Bitcoin and Trump-branded tokens, has been shaken by the inaugural events, and the future remains unpredictable.
