Bitcoin and Cryptocurrencies Retreat After Trump's Inauguration

Market Reaction to Trump's Inauguration

Bitcoin, the largest cryptocurrency by market capitalization, reached a record high of $109,071 on Monday but fell to $102,100 by Tuesday. This reversal came after President Trump's inaugural speech did not mention cryptocurrencies, disappointing industry stakeholders who had anticipated favorable policies.

Trump-Themed Meme Coin's Volatile Debut

The $TRUMP meme coin, launched just days before the inauguration, surged from $6.5 to a peak of $74.59 on Monday, giving it a valuation of over $14 billion. However, it dropped to $40.20 by Tuesday. The coin, primarily owned by entities linked to Trump's business, has raised concerns about conflict of interest and speculative investments.

Regulatory Expectations and Volatility

Industry experts suggest that while Trump's administration may eventually introduce crypto-friendly policies, such as a bitcoin strategic reserve or deregulation, these changes are likely to unfold gradually. Meanwhile, crypto ETFs, such as the ChinaAMC Bitcoin ETF, also experienced declines, with a drop of over 5%.

Personnel Changes and Potential Regulatory Shifts

Trump's appointment of Mark Uyeda as acting SEC chair and the potential nomination of Paul Atkins signals a shift in regulatory oversight. Both officials are expected to roll back previous restrictions on cryptocurrencies, potentially leading to a more favorable environment for digital assets.

Conflict of Interest Concerns

The launch of $TRUMP and $MELANIA tokens, along with other Trump-linked crypto projects, has sparked ethical concerns. These initiatives have drawn scrutiny for their potential to generate speculative investments with limited transparency, raising questions about the president's financial dealings.