Image credit: The Byteline

Bitcoin and other cryptocurrencies, including the freshly minted $TRUMP token, stumbled on Tuesday as President Donald Trump’s initial wave of policies left the crypto world waiting for attention. Hopes were high that the newly sworn-in president, known for his crypto-friendly rhetoric, would hit the ground running with bold moves. Instead, his first announcements skirted the topic altogether, leaving the industry in suspense.

Bitcoin, which had surged to a record $109,071 during Trump’s inauguration, tumbled to nearly $100,000 before settling around $102,500. Meanwhile, the $TRUMP token, launched with much fanfare just days ago, saw its value halve to $34.40, a sharp drop from its $74.59 peak. For a coin that started at $6.50 and briefly claimed a market cap of over $14 billion, the plunge was a sobering moment.

Trump’s inaugural speech focused on trade, immigration, and energy deregulation, along with headline-grabbing actions like a reprieve for TikTok. But for the crypto world, his silence on digital assets felt deafening.

“I think in the short term, this could be a classic ‘sell-the-news’ event,” said Matthew Dibb, Chief Investment Officer at Astronaut Capital. “Crypto investors were expecting big announcements—like a Bitcoin reserve or regulatory easing—but it seems these changes, if they come, will take time. For now, we’re bracing for more volatility.”

Indeed, crypto markets reflected that unease. Bitcoin ETFs like ChinaAMC’s shed nearly 6%, and analysts predict more turbulence as investors reassess their bets.

A Glimmer of Hope in New Leadership

While the absence of crypto-specific announcements dampened excitement, Trump’s reshuffle of key personnel at the SEC offers a glimmer of hope. He appointed Mark Uyeda, a Republican SEC member, as acting chair and plans to nominate Paul Atkins, a former commissioner with a pro-business reputation, for the top spot permanently.

Atkins is expected to unwind the regulatory crackdown spearheaded by Gary Gensler during the Biden administration, while Uyeda has already criticized the SEC’s lack of clear guidelines for crypto companies. Insiders suggest policy shifts could begin as early as next week.

“Regulatory clarity could be a game-changer for the industry,” noted one expert, adding that these moves might herald a more constructive approach to digital assets.

Trump Tokens Raise Eyebrows

Amid the market drama, the $TRUMP and $MELANIA tokens—launched just before the inauguration—have sparked controversy. According to their website, 80% of $TRUMP tokens are owned by CIC Digital, a Trump-affiliated entity, and another group called Fight, Fight, Fight.

While the creators insist the tokens are not investments but symbolic gestures supporting Trump’s ideals, critics are raising conflict-of-interest concerns. The tokens’ ability to rapidly attract billions in speculative funds with little transparency has fueled calls for scrutiny.

Adding to the intrigue, World Liberty Financial, another Trump-linked crypto initiative, announced it raised $300 million in an initial token sale and plans to issue more tokens soon.

Trump, who has pledged to hand over management of his business empire to his children, now faces questions over how these crypto ventures align with his role as president.

The Long Road Ahead

For now, the crypto world is left to navigate the highs and lows of expectation. Trump’s presidency may yet bring the sweeping changes investors hoped for, but the path forward seems more incremental than immediate.

Whether this administration will deliver on the promise of a crypto revolution remains to be seen, but one thing is clear: the spotlight on digital assets isn’t dimming anytime soon.

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