Bitcoin rally cools as Trump makes no new mention of crypto
The world’s largest cryptocurrency, hit a record high $109.071 on Monday
21 January 2025 - 13:54
byTom Westbrook and Elizabeth Howcroft
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Singapore — Bitcoin, other cryptocurrencies and even the newly minted token bearing Donald Trump’s name cooled on Tuesday, after the US president’s first set of policies after his inauguration made no reference to the asset class.
Bitcoin, the world’s largest cryptocurrency, hit a record high $109.071 on Monday when Trump was sworn in as the 47th US president, but later started falling. By 12.01pm on Tuesday, it was trading at $102.546.13 — still up about 9.5% so far this month.
Trump’s own cryptocurrency, launched on Friday night, was trading at $37.98, according to cryptocurrency price tracker CoinMarketCap, having roughly halved since its peak at about $75 on Monday, when its market value exceeded $14-billion. The coin had been priced at about $6.50 at its launch.
Trump’s inaugural speech on Monday was accompanied by a host of executive orders and plans relating to trade tariffs, immigration, energy deregulation and even a reprieve for popular Chinese short-video app TikTok. But he did not mention cryptocurrencies.
“The digital asset market is disappointed to not have been mentioned in the inauguration speech or day 1 executive orders,” said Geoffrey Kendrick, global head of digital assets research at Standard Chartered.
“I suspect bitcoin will end up going lower so long as we get no news from Trump on digital assets. A break back below $100,000 seems inevitable,” he said.
Hopes had been building among crypto investors for months that the crypto-friendly president would kick-start a sea-change in US policies towards the volatile asset class. The excitement helped bitcoin rise above $100,000 for the first time ever in December last year.
“I think in the short term there’s a chance this could be a sell-the-news event,” said Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, adding that crypto investors had been anticipating some executive actions to be rolled out during Trump’s first day in office.
“The market has some great expectations about a bitcoin strategic reserve and a loosening of regulations about digital assets, but it’s more likely these developments will be drip-fed over a series of months rather than days. Bitcoin has already retreated ... We are expecting further volatility here and likely a sell-off,” Dibb said.
Crypto exchange traded funds sold off too. The ChinaAMC bitcoin ETF shed nearly 6%.
However, Trump has already set in motion personnel changes that the industry sees as encouraging.
He has tapped Mark Uyeda, a Republican member of the US Securities and Exchange Commission, to be acting chair of the SEC and plans to nominate former SEC commissioner Paul Atkins to run the regulator on a permanent basis.
Atkins is widely expected to end a crypto crackdown led by former president Joe Biden’s Democratic SEC chair Gary Gensler and Uyeda has criticised the SEC for failing to offer guidance on how crypto companies can register with the SEC.
Top Republican officials at the SEC are poised to begin overhauling its cryptocurrency policies potentially as early as next week, said three people briefed on the matter.
Meanwhile, Trump’s launch of the $Trump token and the $Melania token, for first lady Melania Trump, shortly before his inauguration creates new conflict-of-interest concerns, ethics experts and industry insiders said.
Eighty percent of the Trump coin’s tokens are owned by CIC Digital, an affiliate of Trump’s business, and another entity called Fight, Fight, Fight, according to its website.
The companies said they are not investments or securities but are an “expression of support for, and engagement with, the ideals and beliefs embodied by the symbol “$Trump”.
World Liberty Financial, a separate Trump-linked crypto project, also announced on Monday it had completed an initial token sale, raising $300-million, and would look to issue additional tokens.
Trump has pledged to hand management of his assets to his children, but crypto is raising particular concerns due to its ability to quickly attract billions of speculative dollars with little transparency.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Bitcoin rally cools as Trump makes no new mention of crypto
The world’s largest cryptocurrency, hit a record high $109.071 on Monday
Singapore — Bitcoin, other cryptocurrencies and even the newly minted token bearing Donald Trump’s name cooled on Tuesday, after the US president’s first set of policies after his inauguration made no reference to the asset class.
Bitcoin, the world’s largest cryptocurrency, hit a record high $109.071 on Monday when Trump was sworn in as the 47th US president, but later started falling. By 12.01pm on Tuesday, it was trading at $102.546.13 — still up about 9.5% so far this month.
Trump’s own cryptocurrency, launched on Friday night, was trading at $37.98, according to cryptocurrency price tracker CoinMarketCap, having roughly halved since its peak at about $75 on Monday, when its market value exceeded $14-billion. The coin had been priced at about $6.50 at its launch.
Trump’s inaugural speech on Monday was accompanied by a host of executive orders and plans relating to trade tariffs, immigration, energy deregulation and even a reprieve for popular Chinese short-video app TikTok. But he did not mention cryptocurrencies.
“The digital asset market is disappointed to not have been mentioned in the inauguration speech or day 1 executive orders,” said Geoffrey Kendrick, global head of digital assets research at Standard Chartered.
“I suspect bitcoin will end up going lower so long as we get no news from Trump on digital assets. A break back below $100,000 seems inevitable,” he said.
Hopes had been building among crypto investors for months that the crypto-friendly president would kick-start a sea-change in US policies towards the volatile asset class. The excitement helped bitcoin rise above $100,000 for the first time ever in December last year.
“I think in the short term there’s a chance this could be a sell-the-news event,” said Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, adding that crypto investors had been anticipating some executive actions to be rolled out during Trump’s first day in office.
“The market has some great expectations about a bitcoin strategic reserve and a loosening of regulations about digital assets, but it’s more likely these developments will be drip-fed over a series of months rather than days. Bitcoin has already retreated ... We are expecting further volatility here and likely a sell-off,” Dibb said.
Crypto exchange traded funds sold off too. The ChinaAMC bitcoin ETF shed nearly 6%.
However, Trump has already set in motion personnel changes that the industry sees as encouraging.
He has tapped Mark Uyeda, a Republican member of the US Securities and Exchange Commission, to be acting chair of the SEC and plans to nominate former SEC commissioner Paul Atkins to run the regulator on a permanent basis.
Atkins is widely expected to end a crypto crackdown led by former president Joe Biden’s Democratic SEC chair Gary Gensler and Uyeda has criticised the SEC for failing to offer guidance on how crypto companies can register with the SEC.
Top Republican officials at the SEC are poised to begin overhauling its cryptocurrency policies potentially as early as next week, said three people briefed on the matter.
Meanwhile, Trump’s launch of the $Trump token and the $Melania token, for first lady Melania Trump, shortly before his inauguration creates new conflict-of-interest concerns, ethics experts and industry insiders said.
Eighty percent of the Trump coin’s tokens are owned by CIC Digital, an affiliate of Trump’s business, and another entity called Fight, Fight, Fight, according to its website.
The companies said they are not investments or securities but are an “expression of support for, and engagement with, the ideals and beliefs embodied by the symbol “$Trump”.
World Liberty Financial, a separate Trump-linked crypto project, also announced on Monday it had completed an initial token sale, raising $300-million, and would look to issue additional tokens.
Trump has pledged to hand management of his assets to his children, but crypto is raising particular concerns due to its ability to quickly attract billions of speculative dollars with little transparency.
Reuters
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