Bitcoin and other cryptocurrencies, and even the new token bearing Donald Trump’s name, fell on Tuesday, after the US president’s first round of policies after his inauguration made no reference to this class of assets.
Bitcoin, the world’s largest cryptocurrency, BTC= hit a record high of $109,071 on Monday as Trump was sworn in as the 47th US president, but later pared those gains and was last trading at $101,705.40.
The Trump-branded meme coin, launched Friday evening, last traded at $34.4, according to cryptocurrency price tracker CoinGecko. That’s half of its record price of $74.59 on Monday, when the valuation topped $14 billion. The coin was initially priced around $6.5 when it launched.
Trump Cryptocurrency:Trump’s new coin soars on his first day in office, lifts other crypto tokens
Trump’s inaugural address Monday was accompanied by a slew of executive orders and plans related to trade tariffs, immigration, energy deregulation and even a reprieve for China’s popular enforcement of short TikTok videos.
But he didn’t mention cryptocurrencies, disappointing an industry that had for months been excited that the crypto-friendly president would usher in a sea change in U.S. policy toward this class of cryptocurrencies. volatile assets.
“I think in the short term there is a chance that this will be a news-selling event,” said Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, adding that crypto investors expected some executive actions to be put in place. on Trump’s first day in office.
“The market has high expectations for a strategic reserve of Bitcoin and an easing of regulations around digital assets, but it is more likely that these developments will come in dribs and drabs over a series of months rather than days. Bitcoin has already pulled back… We’re expecting more volatility here and probably a sell-off,” Dibb said.
Exchange-traded crypto funds were also sold off. The ChinaAMC Bitcoin ETF 83042.HK lost almost 6%.
However, Trump has already implemented personnel changes that the industry considers encouraging.
He chose Mark Uyeda, a Republican member of the U.S. Securities and Exchange Commission, to chair the agency on an interim basis and plans to appoint former SEC Commissioner Paul Atkins to lead the agency permanently.
Atkins is widely expected to end a crypto crackdown led by Gary Gensler, former President Joe Biden’s Democratic SEC chairman, and Uyeda has criticized the SEC for failing to provide guidance on how which crypto companies can register with the agency.
Top Republican SEC officials are set to begin reviewing the agency’s cryptocurrency policies as early as next week, three people briefed on the matter said.
Conflict of interest
Meanwhile, Trump’s launch of the $TRUMP token and the $MELANIA token, for first lady Melania Trump, shortly before his inauguration, creates new conflict of interest concerns, ethics experts and industry insiders said. sector.
Eighty percent of Trump’s tokens are owned by CIC Digital, a subsidiary of Trump’s company, and another entity called Fight, Fight, Fight, according to its website.
The companies said they were not investments or securities, but an “expression of support and commitment to the ideals and beliefs embodied in the ‘$TRUMP’ symbol.”
World Liberty Financial, a separate crypto project linked to Trump, also announced Monday that it had completed an initial token sale, raising $300 million, and would seek to issue additional tokens.
Trump has pledged to hand over management of his assets to his children, but the crypto asset raises particular concerns because of its ability to quickly attract billions of speculative dollars with little transparency.
Additional reporting by Hannah Lang and Michelle Conlin in New York, Elizabeth Howcroft in Paris, Vidya Ranganathan in Singapore; Editing by Jacqueline Wong