Bitcoin and other cryptocurrencies slowed their momentum after newly elected US President Donald Trump's inaugural speech and executive orders failed to mention digital assets.
On Monday, just as Trump officially swore in, Bitcoin had reached an all-time high of $109,071. However, this has already dropped to $102,546.13 on Tuesday. Similarly, Trump's own cryptocurrency, $TRUMP, launched last week, peaked at $75 but fell to $37.98.
According to Reuters, investors were left disappointed that no crypto-related policies or plans were announced by the new president on his first day in office, which damped the market. Many had hoped that he would come up with groundbreaking policies that support digital assets since he has a prior good record on this front.
Bitcoin, according to analysts like Geoffrey Kendrick of Standard Chartered, might hit below $100,000 unless the new administration sends out some clear signals. Others, like Matthew Dibb of Astronaut Capital, are of the opinion that the latest price rise is a "sell-the-news" situation, expecting volatility and further falls.
While no immediate policy changes are likely to come in crypto, some appointments by Trump into key regulatory roles could signal some shifts.
SEC Regulations for Digital Assets Under Trump's Second Admin
A Republican SEC member, Mark Uyeda, has been named acting chair, while former Commissioner Paul Atkins is likely to permanently lead the SEC.
Both have expressed criticism of tight crypto regulations during the previous administration. Industry insiders believe that some of the rules could be eased starting next week, which may reduce the burden of regulation on crypto firms.
For some it does not make sense that Trump will leave the digital asset behind since his his $TRUMP token, controlled mainly by Trump-affiliated entities, has been criticized for potential conflicts of interest. The tokens, which are marketed as symbols of support rather than investments, have raised ethical questions because they are able to attract speculative dollars with minimal oversight.
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