Cryptocurrencies Drop Up to 9% After Donald Trump’s Inauguration
The downward movement comes after a notable rally driven by Donald Trump’s inauguration as the 47th president of the United States.
The cryptocurrency market experienced a significant pullback following Trump’s inaugural speech. Bitcoin fell 4% to $103,800, moving further away from its all-time high of $109,114 reached last Monday. Meanwhile, Ethereum declined by 1.4% to $3,300. Other cryptocurrencies saw sharper declines, with Dogecoin leading the drop at 9%, followed by Cardano (-8.4%), Hedera (-7.9%), and Ripple (-6.4%).
Although Trump’s inauguration was expected to benefit the sector, his first day in office has introduced uncertainty into the markets. Notably, Trump did not mention cryptocurrencies in his inaugural speech, and they do not appear to be among his immediate priorities.
Bitcoin and Crypto Outlook
Despite this, the new administration could bring positive changes for the sector in the medium term. Trump has promised more favorable policies toward crypto assets compared to those implemented by Joe Biden’s administration. Key positions have been filled with cryptocurrency advocates, including a new SEC chairman, a Treasury Secretary supportive of the sector, and David Sacks as the White House’s “AI and Cryptocurrency Czar.”
Among the most notable promises is the creation of a strategic Bitcoin reserve. However, the likelihood of this happening within the first 100 days of the administration has dropped to 45%, down from 60% on inauguration day, according to Polymarket.
Pro-Crypto Environment and MemeCoins
The pro-crypto stance of the new administration is expected to drive greater regulatory clarity, encouraging broader institutional participation and demand for digital assets. The much-publicized establishment of a U.S. Strategic Bitcoin Reserve signals a new level of institutional confidence and commitment to digital assets. Beyond the U.S., numerous governments and central banks are engaged in discussions about the role of Bitcoin and other cryptocurrencies in national reserves.
Meanwhile, meme tokens associated with the Trump family, TRUMP and MELANIA, have reached market capitalizations of $8.8 billion and $945 million, respectively, solidifying their positions as notable assets within the ecosystem.
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