Bitcoin Retreats as Trump Delays Crypto Policy Announcement

Trump’s First Day as President: No Crypto Policy Yet, Bitcoin Holds Steady
Bitcoin Climbs to $109K, Then Retreats After Trump’s Inauguration”
Trump’s Inauguration Leaves Crypto Market Waiting for Clarity on Policies
Bitcoin Surges, Then Falters: Crypto Markets Await Trump’s Next Move

Bitcoin held a retreat from its record high as traders awaited crypto policy directives from President Donald Trump following his inauguration.

The market had been expecting an executive order in support of the digital asset sector, but no such order appeared in Trump’s flurry of actions on his first day in office. Instead, he focused on issues such as immigration, trade, energy, and even TikTok.

Bitcoin, the original cryptocurrency, was trading at about $103,800 as of 7:11 a.m. Tuesday in New York. The token hit a peak of $109,241 just before Trump’s swearing-in, but later fell back. Most other digital assets also experienced some wavering.

“It’s premature to draw strong conclusions from the absence of an immediate executive order, given that the Trump administration has a range of priorities,” said Richard Galvin, co-founder of hedge fund DACM. “Markets have shown resilience, suggesting investors are taking a similar, longer-term view.”

Trump Tokens
Before his inauguration, Trump and his wife, Melania, unveiled memecoins that caused significant market fluctuations, drawing in funds from investors. Later, some investors embraced the idea that these moves could incentivize Trump to adopt more crypto-friendly policies.

Bloomberg News had previously reported that Trump was considering an executive order that could designate digital assets as a “national priority.” Trump had become a supporter of the digital-asset sector during his campaign, even after initially calling Bitcoin a scam. He pledged to make the U.S. the world’s crypto capital and endorsed the idea of creating a strategic Bitcoin stockpile.

While it was surprising that Trump didn’t issue an executive order “praising” crypto, TD Cowen analyst Jaret Seiberg noted in a report that, “one should be forthcoming,” though it might not be “substantive.”

The Trump memecoin was trading at about $37, according to data from CoinMarketCap. The coin briefly reached a market value of more than $15 billion on Sunday but dropped below $7.5 billion by Tuesday.

Memecoin Criticism
The Trump and Melania memecoins faced criticism from some industry executives, particularly because they risked making crypto seem frivolous.

However, others had a different perspective. Ben El-Baz, managing director of HashKey Global, argued that the tokens launched by Trump and his team have actually accelerated Bitcoin’s momentum, as retail traders now expect the Trump administration to “prioritize and reaffirm his commitment to the crypto industry.”

Memecoins, a type of cryptocurrency with questionable intrinsic value and high volatility, rely on social media trends to drive prices up, but can also fall just as quickly.

An 80% share of the Trump token is owned by an affiliate of the Trump Organization called CIC Digital LLC, and a related entity called Fight Fight Fight LLC — whose name echoes the words Trump said after a bullet grazed his ear during his campaign. Their holdings will be unlocked over a three-year period.

Possible ‘Longevity’
According to the website, 200 million tokens were immediately available, and this supply is expected to grow to 1 billion over three years. The fine print on the website specifies that the token is not intended to be an “investment opportunity, investment contract, or security of any type.”

For Gautam Chhugani of Bernstein, a memecoin “capitalizing on Trump’s brand and politics” has potential longevity. He acknowledged that while some may “cringe,” this move marks the start of a “new crypto regulatory era.”

Since Trump’s U.S. election victory in early November, Bitcoin has surged around 50%, leading some to question whether the rally might take a breather if the anticipated presidential actions fail to excite speculators.

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