Bitcoin and other cryptocurrencies cooled off on Tuesday following the inauguration of Donald Trump as the 47th U.S. President, with his initial policy announcements making no mention of digital assets.
Bitcoin, the world’s largest cryptocurrency, had surged to a record high of $109,071 on Monday during Trump’s swearing-in ceremony.
However, by 10:01 GMT on Tuesday, it had dropped to $102,546.13, still reflecting a 9.5% gain for the month of January.
The newly launched Trump-branded cryptocurrency also saw a steep decline. Initially priced at $6.50 during its Friday night launch, the token peaked at $75 on Monday, giving it a market valuation exceeding $14 billion.
However, it has since halved in value to $37.98, according to data from CoinMarketCap.
President Trump’s inaugural address focused on trade tariffs, energy deregulation, immigration policies, and a reprieve for TikTok, but the absence of any mention of cryptocurrencies left the digital asset market deflated.
According to Reuters’ report, Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered: “The digital asset market is disappointed to not have been mentioned in the inauguration speech or day-one executive orders. I suspect Bitcoin will go lower in the absence of news from Trump on digital assets. A break below $100,000 seems inevitable.”
For months, crypto investors had been optimistic about Trump’s crypto-friendly stance, expecting policies that could usher in a new era of regulatory leniency.
