Most cryptocurrencies, including Bitcoin and the recently released memecoin $TRUMP (Official Trump), fell in price on Tuesday after Trump’s inauguration and the signing of his first decrees, which did not include a document related to the cryptocurrency market, writes Reuters.
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On Monday, shortly before Trump was sworn in as the 47th president of the United States, Bitcoin hit an all-time high of $109,071, but later fell to $101,705. According to CoinGecko, Trump’s memcoin, which launched on Friday evening, fell to $34.4, down from its peak price of $74.59 on Monday, when its market capitalization estimate exceeded $14 billion. At launch $TRUMP cost less than $1.
Matthew Dibb, chief investment officer at crypto asset management firm Astronaut Capital, noted that the crypto industry expected the president to usher in dramatic changes in U.S. policy toward the volatile asset class on his first day in office.
«The market has high hopes for Bitcoin’s strategic reserve and easing of digital asset regulation, but these developments are likely to be trickled down over a period of months rather than days. Bitcoin has already retreated… We expect further volatility and likely a sell-off,” Dibb said. Spot ETFs are also falling in value. Bitcoin ETF ChinaAMC lost almost 6% of its value.
At the same time, there are encouraging changes for the crypto industry. Trump appointed Republican Mark Uyeda, a member of the US Securities and Exchange Commission (SEC), as acting chairman of the SEC. He is expected to be replaced on a permanent basis by former commission commissioner Paul Atkins.
Atkins is expected to end former SEC Chairman Gary Gensler’s crackdown on the cryptocurrency market, while Uyeda criticized the SEC for failing to provide guidance on how cryptocurrency companies should register.