- Bitcoin hit an all-time high of $109,071 during Trump’s inauguration but dropped to $102,546.13, disappointing cryptocurrency investors
- The Trump-branded cryptocurrency experienced sharp volatility, plummeting from $75 to $37.98 after the inauguration ceremony
Bitcoin and other cryptocurrencies saw a dip on Tuesday following the inauguration of Donald Trump as the 47th President of the United States.
Despite market expectations, Trump’s initial policy announcements did not mention digital assets.
Bitcoin, the world’s leading cryptocurrency, hit an all-time high of $109,071 on Monday during Trump’s swearing-in ceremony.
However, by 10:01 GMT on Tuesday, it had dropped to $102,546.13, though still up by 9.5% for January.
The newly launched Trump-branded cryptocurrency experienced even sharper fluctuations. Priced at $6.50 during its Friday debut, it skyrocketed to $75 on Monday, achieving a market valuation exceeding $14 billion. By Tuesday, the token’s value had halved to $37.98, according to CoinMarketCap.
Trump’s inaugural address focused on trade tariffs, energy deregulation, immigration reforms, and TikTok’s reprieve. However, the absence of any discussion on cryptocurrencies left the digital asset market underwhelmed.
Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered, expressed disappointment. Speaking to Reuters, he said, “The digital asset market is let down by the lack of mention in the inauguration speech or executive orders.
Without news from Trump on digital assets, Bitcoin’s value may decline further, with a drop below $100,000 appearing likely.”
Crypto investors had been optimistic about Trump’s potential to create a favourable regulatory environment for digital assets. His silence on the topic has dampened hopes for immediate reforms in the crypto space.
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