Bitcoin has extended its retreat from a record high as traders await concrete actions from newly inaugurated President Donald Trump regarding cryptocurrency policy. The market had anticipated an executive order on the digital asset sector, but it has yet to materialize amid a flurry of other presidential initiatives.
As of 9:46 a.m. Tuesday in Singapore, Bitcoin traded around $101,300, marking a 1% drop. The cryptocurrency had previously surged to a peak of $109,241 ahead of Trump’s swearing-in before retreating. Despite this pullback, Bitcoin remains a focal point of market attention, with investors hopeful that Trump’s administration will adopt pro-crypto policies.
Before the inauguration, Trump and his wife Melania unveiled their own memecoins, which generated significant market volatility. While initially sparking excitement, the memecoins ultimately caused a diversion of flows, leading to fluctuating prices. Some investors embraced the idea that the move signaled Trump’s growing support for crypto-friendly policies.
Bloomberg News had previously reported that Trump is considering issuing an executive order to designate cryptocurrency as a “national priority.” During his campaign, Trump expressed increasing support for the digital-assets industry, despite once dismissing Bitcoin as a “scam.” He pledged to make the U.S. the world’s crypto capital and even backed the idea of creating a strategic Bitcoin stockpile.
The broader cryptocurrency market also saw declines, with tokens such as Ether and Solana following suit. Trump’s memecoin was trading at around $31, having hit a market value exceeding $15 billion on Sunday before experiencing a sharp decline.
Criticism of the Trump and Melania memecoins emerged from some industry executives, who were concerned that the tokens could make the crypto market appear frivolous. However, others, including Ben El-Baz, managing director of HashKey Global, argued that the memecoins had accelerated Bitcoin’s momentum by encouraging retail traders to expect the administration to prioritize the crypto sector.
Memecoins are cryptocurrencies known for their extreme volatility and reliance on social media to fuel price increases, often experiencing rapid drops as well. Trump’s memecoin, in particular, has drawn attention for its connection to the Trump brand and politics, raising questions about its long-term potential.
An 80% stake in the Trump token is held by CIC Digital LLC, a Trump Organization affiliate, alongside Fight Fight Fight LLC, a related entity. The token’s supply will increase over the next three years, with 200 million tokens initially made available, and the total supply growing to 1 billion over the same period.
Although the token is not officially designated as an “investment opportunity” or security, major cryptocurrency exchanges like Coinbase and Binance have announced plans to list the token. Robinhood Markets also listed the Trump token on Monday.
Jonathan Yark, senior quantitative trader at Acheron Trading, commented that the debut of the Trump token confirmed that digital assets, especially Bitcoin, will have the backing of the U.S. government, presenting significant opportunities for the crypto market in the future.
As the market continues to react to Trump’s actions and policies, investors are eagerly awaiting further clarity on the administration’s stance on digital assets, which could shape the future of the cryptocurrency industry in the U.S.
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