Bitcoin Price Drops During Trump’s Inauguration Day Trading
Bitcoin fell to $103,700 from $109,241 during Trump’s inauguration as traders speculated on upcoming crypto-friendly policies and market shifts.
Bitcoin faced a sharp drop on a turbulent trading day that coincided with Donald Trump’s inauguration as the 47th U.S. president. By late Monday in New York, Bitcoin was trading around $103,700, down from its earlier record high of $109,241.
Traders are hoping for crypto-friendly policies under Trump, driven by expectations of sweeping executive orders. However, some investors were let down when Trump’s inaugural speech didn’t include specific mentions of Bitcoin.
“The markets are unsettled because Trump’s speech didn’t address Bitcoin directly,” said Matt Hougan, Chief Investment Officer at Bitwise Asset Management. “It’s surprising to see such high expectations for crypto in a presidential address.”
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Market Reactions
Ahead of the inauguration, Trump and his wife, Melania, introduced memecoins, causing significant market movement as investors reacted to the unexpected announcement. Over time, the market began interpreting the launch as a signal of Trump’s commitment to crypto-friendly initiatives.
Trump’s Crypto Focus
Reports suggest that Trump might make the cryptocurrency sector a “national priority” through an executive order. Trump, who once dismissed Bitcoin as a scam, has become an advocate for digital assets. He has promised to position the U.S. as a global leader in crypto and has floated the idea of creating a national Bitcoin reserve.
While Bitcoin experienced volatility, other cryptocurrencies like Ether and XRP posted gains. The Trump memecoin traded around $40, according to CoinMarketCap, after briefly hitting a $15 billion valuation on Sunday before falling.
Some industry leaders criticized the memecoins, saying they risk trivializing the cryptocurrency market. However, others saw them as a boost to Bitcoin’s momentum. Ben El-Baz, Managing Director at HashKey Global, stated that the tokens’ debut reinforced Trump’s commitment to promoting the crypto industry.
The Memecoin Phenomenon
Memecoins are known for their high volatility and dependence on social media hype. The Trump token, largely controlled by CIC Digital LLC and Fight Fight Fight LLC, highlights Trump’s branding power. The token’s supply will expand from an initial 200 million to 1 billion over three years.
Despite disclaimers on its website that the token isn’t an investment product, major exchanges like Coinbase, Binance, and Robinhood Markets announced plans to list it, drawing significant attention from investors.
Also Read: Trump’s Cryptocurrency Launch Gains Huge Attention Before His Inauguration
