Trump Omits Crypto From Day One Orders, Market in Limbo

Following his inauguration, markets awaited President Donald Trump’s crypto policy orders, which caused Bitcoin to drop from a record high.

The market was anticipating an executive order to help the digital asset industry, but Trump’s flurry of moves on his first day in office did not include one. In its place, he addressed issues like TikTok, trade, immigration, and energy.

At 12:31 p.m. on Tuesday, the original Bitcoin was valued at approximately $102,400 in Singapore. Prior to Trump’s inauguration, the token peaked at $109,241 before declining. The majority of other digital assets likewise faltered.

According to Richard Galvin, co-founder of hedge fund DACM, “it’s premature to draw strong conclusions from the absence of an immediate executive order” because the Trump administration has a number of objectives. “Resilient markets indicate that investors are adopting a similar, longer-term perspective.”

Trump Tokens

Trump and his wife Melania introduced memecoins before to the inauguration, which caused the market diverge by rerouting flows. Later, investors accepted the idea that the action further encourages Trump to adopt policies that are favorable to cryptocurrency.

Trump is reportedly considering issuing an executive order making the asset class a “national priority. During his campaign, Trump defended the digital assets sector, even though he had previously called Bitcoin a scam. He supported the notion of building a strategic Bitcoin stockpile and promised to establish the US as the global crypto capital.

Jaret Seiberg, an analyst at TD Cowen, wrote in a note that although it’s surprising that Trump didn’t release an executive order “praising” cryptocurrency, “one should be forthcoming,” even though it might not be “substantive.”

Data shows that the Trump memecoin was trading at around $34. On Sunday, its total market value reached above $15 billion, but on Tuesday, it fell below $7 billion.

Memecoin Criticism

Some business leaders criticized the Trump and Melania memecoins, in part because they fear they could make cryptocurrency appear silly.

Others had a different perspective. The Republican and his team’s token launches, according to Ben El-Baz, managing director of HashKey Global, have further boosted Bitcoin’s momentum as individual traders wait for his administration to “prioritize and reaffirm his commitment to the crypto industry.”

Memecoins are a type of cryptocurrency that is highly volatile and has dubious inherent value. They can sink just as fast as they climb, and they rely on social media tailwinds to raise their prices.

A Trump Organization affiliate, CIC Digital LLC, and a connected company, Fight Fight Fight LLC, which is named after the words Trump mouthed after a gunshot grazed his ear during the campaign trail, own 80% of the Trump token. Over the course of three years, their holdings will be unlocked.

Potential “Longevity”

The website states that 200 million of the tokens were made available right now, with the quantity expected to increase to one billion over the course of three years. The coin isn’t meant to be a “investment opportunity, investment contract, or security of any type,” according to the website’s fine print.

A memecoin “capitalizing on Trump’s brand and politics, has potential longevity,” according to Gautam Chhugani of Bernstein. He goes on to say that although some may “cringe,” this is the beginning of a “new crypto regulatory era.”

Bitcoin’s price has gone up about 50% since Trump won the election in early November. This makes people wonder if the rise should take a break if the expected presidential action doesn’t excite investors.

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