The cryptocurrency market was abuzz with anticipation as Donald Trump assumed office as the 47th President of the United States. However, traders were left speculating after his Day-One executive orders failed to include any directives for the digital asset sector. Bitcoin, along with most other cryptocurrencies, experienced a retreat from its record highs, leaving investors wondering what’s next for the crypto market under the Trump administration.
What Happened to Bitcoin and Crypto Prices After Trump’s Inauguration?
Bitcoin, the world’s largest cryptocurrency, hit an all-time high of $109,241 before falling back to $102,400 as of January 21, 2025. The broader crypto market also wavered, with many altcoins following Bitcoin’s lead.
Key Market Data:
- Bitcoin’s Peak Price: $109,241
- Bitcoin’s Current Price: $102,400
- Trump Memecoin Price: $34
- Trump Memecoin Market Cap: $6.86 billion (down from $15 billion)
The market had been optimistic about the potential for Trump’s administration to issue crypto-friendly policies, given his campaign promises to prioritize digital assets. Yet, no such orders materialized on Day One, leaving the market in a state of uncertainty.
Why Did Trump Skip Crypto in His Day-One Orders?
Trump’s inaugural blitz focused on pressing issues like immigration, trade, energy, and TikTok, leaving the crypto market without the much-anticipated executive order.
Reasons Behind the Delay:
- Competing Priorities: Trump’s administration appears to have prioritized traditional economic and political issues over crypto.
- Strategic Timing: Analysts suggest Trump may issue a crypto-related executive order in the coming weeks as part of a broader economic agenda.
- Speculative Approach: Trump’s history with crypto, including calling Bitcoin a “scam” before becoming an advocate, has left investors cautious.
What Role Did Trump Memecoins Play in the Market Volatility?
Before the inauguration, Trump and his wife Melania launched their official memecoins, $TRUMP and $MELANIA, which added to the market frenzy. These tokens experienced wild price swings, with $TRUMP’s market cap sliding from $15 billion on Sunday to below $7 billion by Tuesday.
Criticisms of Trump Memecoins:
- Frivolous Image: Industry leaders worry that memecoins like $TRUMP undermine the credibility of the broader crypto sector.
- Volatility: The high price fluctuations of these tokens highlight their speculative nature.
- Centralized Holdings: Over 80% of $TRUMP tokens are owned by Trump-affiliated entities like CIC Digital LLC, raising concerns about market manipulation.
What Does the Future Hold for Crypto Under Trump?
While Trump’s Day-One omissions disappointed some, analysts believe that his administration could still be a game-changer for crypto. During his campaign, Trump pledged to make the U.S. the global leader in digital assets and proposed creating a federal Bitcoin stockpile.
Predictions for Trump’s Crypto Policies:
- National Priority: Trump is reportedly considering an executive order designating digital assets as a “national priority.”
- Regulatory Era: Experts like Gautam Chhugani believe Trump’s crypto stance marks the start of a new regulatory era.
- Strategic Bitcoin Reserves: Trump’s proposal to build federal Bitcoin reserves could stabilize the market and attract institutional investors.
FAQs
Why didn’t Trump include crypto in his Day-One orders?
Trump’s administration prioritized other issues like immigration and trade. Analysts believe crypto-related directives may come later as part of a broader economic plan.
How did Bitcoin perform after Trump’s inauguration?
Bitcoin hit a peak of $109,241 before retreating to $102,400, reflecting market uncertainty due to the absence of crypto-friendly policies.
What are Trump memecoins, and how have they impacted the market?
$TRUMP and $MELANIA are official memecoins launched by Trump and Melania Trump. While they generated initial excitement, their volatility and centralized holdings have raised concerns.
What is the current price of $TRUMP memecoin?
As of January 21, 2025, the $TRUMP memecoin is trading at $34, down from a peak market cap of $15 billion.
Will Trump introduce crypto-friendly policies?
Trump pledged to support crypto during his campaign, and analysts expect a potential executive order designating digital assets as a “national priority.”
What are memecoins, and why are they controversial?
Memecoins are cryptocurrencies with little intrinsic value, relying on social media buzz for price movement. Their speculative nature and volatility often attract criticism.
Is Bitcoin’s rally sustainable under Trump’s administration?
Bitcoin’s performance will depend on Trump’s crypto policies and market sentiment. Without supportive directives, the rally may lose momentum.
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