Crypto Market on Hold as Trump Skips Day-One Policies: Bitcoin retreated from its record high as traders
awaited President Donald Trump’s cryptocurrency policies following his inauguration.
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Market Expectations
The market anticipated an executive order supporting the digital asset sector,
but Trump’s first-day actions instead prioritized topics such as immigration, trade, energy, and TikTok.
Bitcoin was trading at approximately $102,400 as of 12:31 p.m.
Tuesday in Singapore after peaking at $109,241 before the inauguration.
Other digital assets also experienced fluctuations.
Richard Galvin, co-founder of the DACM hedge fund, remarked:
“It’s too early to draw definitive conclusions from the absence of an immediate executive order,
considering the Trump administration’s broad priorities.”
He added, “Markets have shown resilience, indicating investors are taking a longer-term perspective.”
Trump Tokens
Before the inauguration, Trump and his wife, Melania, launched meme tokens that caused market turbulence by redirecting flows.
Later, investors viewed this move as a signal that Trump might adopt crypto-friendly policies.
Bloomberg News reported that Trump is considering an executive order to classify
the digital asset sector as a “national priority.”
During his campaign, Trump transitioned into a strong supporter of digital assets despite previously calling Bitcoin a “scam.”
He pledged to establish the U.S. as the global cryptocurrency hub and supported the creation of a strategic Bitcoin reserve.
While the lack of an immediate executive order praising crypto was unexpected,
TD Cowen analyst Jaret Seiberg noted that such an order might be forthcoming, even if it’s not “substantive.”
According to CoinMarketCap, Trump’s meme token was trading at $34.
Its market cap reached over $15 billion on Sunday before plummeting below $7 billion by Tuesday.
Meme Token Criticism
Some industry leaders criticized Trump and Melania’s meme tokens, arguing they could undermine the cryptocurrency sector’s seriousness.
Others took a more optimistic view.
Ben El-Baz, managing director at HashKey Global,
stated that the tokens launched by Trump and his team have boosted Bitcoin’s momentum,
as retail investors expect the administration to “prioritize and reaffirm its commitment to the crypto industry.”
Meme tokens are known for their speculative nature and high volatility,
relying heavily on social media trends to boost their price.
However, they can lose value as quickly as they gain it.
Details of Trump Tokens
A Trump Organization affiliate, CIC Digital LLC, and another entity named Fight Fight Fight LLC
referencing Trump’s rallying cry after an assassination attempt grazed his ear during the campaign
collectively hold 80% of Trump tokens.
These holdings will unlock gradually over three years.
Long-Term Potential
According to the token’s website, 200 million tokens became immediately available,
with the supply expected to grow to one billion over three years.
The site clarifies that the token is not intended as an “investment opportunity,
investment contract, or security of any type.”
Gautam Chhugani from Bernstein noted that a meme token leveraging
Trump’s brand and political influence has “potential longevity.”
While some may criticize it,
Chhugani emphasized that this marks the beginning of a “new regulatory era for cryptocurrencies.”
Bitcoin has surged by 50% since Trump’s election win in November,
raising questions about whether this momentum can persist if anticipated presidential actions fail to meet speculators’ expectations.
Crypto Market on Hold as Trump Skips Day-One Policies