Bitcoin faced a sharp decline on a turbulent trading day that coincided with the inauguration of Donald Trump as the 47th president of the United States. Late on Monday in New York, Bitcoin was trading around $103,700, down from its previous all-time high of $109,241.
Traders are expecting pro-cryptocurrency policies under Trump, buoyed by expectations of sweeping executive orders. However, some investors were disappointed when Trump’s inaugural speech did not include specific mentions of Bitcoin.
“Markets are uneasy because Trump’s speech did not directly address Bitcoin,” said Matt Hougan, chief investment officer at Bitwise Asset Management. “It’s surprising to see such high expectations for cryptocurrencies in a presidential speech.”
Market reactions
Before the inauguration, Trump and his wife, Melania, introduced memecoins, sparking a major market move as investors reacted to the unexpected announcement. Over time, the market began to interpret the launch as a sign of Trump’s commitment to pro-cryptocurrency initiatives.
Trump’s crypto approach
Reports suggest that Trump could make the cryptocurrency sector a “national priority” through an executive order. Trump, who once dismissed Bitcoin as a scam, has become an advocate for digital assets. He promised to position the United States as a world leader in crypto and floated the idea of creating a national Bitcoin reserve.
While Bitcoin experienced volatility, other cryptocurrencies such as Ether and XRP posted gains. Trump’s memecoin was trading around $40, according to CoinMarketCap, after briefly reaching a valuation of $15 billion on Sunday before falling.
Some industry leaders criticized memecoins, saying they risk trivializing the cryptocurrency market. However, others saw them as a boost to Bitcoin’s momentum. Ben El-Baz, CEO of HashKey Global, said the tokens’ debut reinforced Trump’s commitment to promoting the crypto industry.
The memecoin phenomenon
Memecoins are known for their high volatility and dependence on social media advertising. The Trump token, largely controlled by CIC Digital LLC and Fight Fight Fight LLC, highlights Trump’s brand power. The token offering will expand from an initial 200 million to 1 billion in three years.
Despite warnings on its website that the token is not an investment product, major exchanges such as Coinbase, Binance, and Robinhood Markets announced plans to list it, attracting widespread investor attention.
Also read: Trump’s Cryptocurrency Launch Gains Massive Attention Ahead of Inauguration