PakGazette and other cryptocurrencies, including the recently launched Donald Trump meme coin, retreated on Tuesday after the president’s initial political announcements failed to mention the asset class.
Bitcoin, the largest cryptocurrency by market capitalization, hit a record high of $109,071 on Monday as Trump was sworn in as the 47th president of the United States. However, those gains were quickly reversed, and the cryptocurrency was trading at $102,100.0 as of 04:27 ET (09:27 GMT) on Tuesday.
The Trump-themed meme coin, launched just days earlier on Friday, also saw a sharp drop. Priced at $6.5 at launch, it peaked at $74.59 on Monday, giving it a valuation of more than $14 billion. At the time of writing on Tuesday, the coin was trading at $40.20, according to CoinGecko.
In his inaugural address, Trump outlined several executive actions on trade tariffs, immigration, energy deregulation and even issued a pardon for TikTok. However, cryptocurrencies were not mentioned, disappointing industry stakeholders who were hoping for significant policy changes under the pro-cryptocurrency president.
“I think in the short term there is a chance this could be a news-selling event,” said Matthew Dibb, chief investment officer at Astronaut Capital. He noted that many investors had anticipated immediate executive actions that would address digital assets.
“The market has high expectations for a strategic bitcoin reserve and an easing of regulations around digital assets, but these developments are more likely to build up little by little over a series of months rather than days. Bitcoin has already pulled back… We are “We expect more volatility here and probably a sell-off,” Dibb added.
Cryptocurrency exchange-traded funds (ETFs) also felt the pressure, with the ChinaAMC Bitcoin ETF (HK 🙂 falling more than 5%.
Despite the lack of immediate action on cryptocurrencies, Trump’s early personnel moves offered some hope for the industry.
Mark Uyeda, a Republican member of the SEC, was named the agency’s acting chairman, and Trump plans to nominate former SEC Commissioner Paul Atkins to the permanent position.
Atkins is expected to roll back the crackdown on cryptocurrencies launched under Gary Gensler, Biden’s Democratic SEC chairman. Uyeda also criticized the agency for not providing clear guidance to crypto companies.
Republican officials at the SEC are reportedly preparing to overhaul the agency’s cryptocurrency policies, and changes could come as early as next week, Reuters said in a report, citing sources familiar with the matter.
Meanwhile, Trump’s launch of the $TRUMP token and first lady Melania Trump’s token ahead of his inauguration has raised concerns about conflicts of interest, Reuters said, citing ethics experts.
Eighty percent of $TRUMP tokens are owned by CIC Digital, a subsidiary of Trump’s business, and another entity called Fight, Fight, Fight. The companies claim that the tokens are not investments but an “expression of support and commitment to the ideals and beliefs embodied by the ‘$TRUMP’ symbol.”
On the other hand, World Liberty Financial, another crypto project linked to Trump, raised $300 million through an initial token sale.
Trump has promised to hand over management of his assets to his children, but the crypto asset is coming under significant scrutiny for its potential to quickly generate billions in speculative investments with minimal transparency.
