Bitcoin Hits All-Time High Day Before Trump’s Inauguration, Then Pauses
Profit-taking sales emerge…Disappointment as no mention during inauguration
Trump-themed meme coin also exits top 20 in market cap
Focus on executive orders like SAB121 and crypto council
On Trump’s first day in office as U.S. President, his speech did not mention cryptocurrency. Expectations for a “Trump-style crypto guideline” were unmet, leading to a selloff in Bitcoin as profit-taking kicked in, slowing its upward momentum. However, as he declared during his campaign to be a “crypto president,” it is anticipated that cryptocurrency policies will gradually be unveiled through executive orders and legislation.
According to CoinMarketCap, Bitcoin traded at $102,797 at 8:10 AM on the 21st, up 1.26% from the previous day and 8.64% higher than a week ago. Prior to Trump’s inauguration, it reached an all-time high of $108,899 at 4:15 PM the day before. The “Official Trump” meme coin, declared as the “only official Trump meme,” fell by 8.20% to $39, dropping out of the top 20 by market cap.
The morning’s weak market was attributed to profit-taking. When the U.S. Consumer Price Index (CPI) report released on the 15th matched expectations, easing inflation concerns and reviving interest rate cut possibilities, cryptocurrencies rallied. Analyst Ruslan Lienka from YouHodler noted, “The positive CPI data was already priced in, and on the day of Trump’s inauguration, the market may decline due to investors seeking short-term profits.”
The absence of cryptocurrency mentions during the inauguration added to the disappointment. At the inauguration held at the Rotunda of the U.S. Capitol in Washington, D.C., the crypto industry expected advanced crypto outlines. Trump touched upon various topics in his 40-minute speech, including illegal immigration, energy, and foreign policy, but did not address cryptocurrency.
Even the executive orders signed on the first day did not include cryptocurrency content. According to documents released by the White House, the orders addressed constructing a border wall, blocking illegal immigration, repealing extreme climate policies, and improving bureaucracy. Foreign media had expected crypto-related executive orders, with Bloomberg and Reuters previously reporting expectations of establishing a “crypto council” with up to 20 members and repealing the accounting guidelines (SAB121) hindering banks’ crypto custody businesses.
However, Trump’s potential use of executive orders to solidify cryptocurrency policies holds weight. With Republicans controlling both houses of Congress, legislative support is expected. Bills clarifying crypto regulations, such as the “21st-century Financial Innovation Technology Act (FIT21)”, and those reducing crypto volatility, such as “stablecoins” and “Bitcoin strategic reserves,” are under attention.
The strategic reserve bill, in particular, though expected to take a considerable time to push through, is anticipated to have massive repercussions. Jerome Powell, Chairman of the Federal Reserve, expressed a negative stance, and differing reserve procedures across U.S. states pose hurdles. Bills related to such reserves have been proposed in Texas, Ohio, and Pennsylvania.
Hyun-jung Kim, a researcher at Kiwoom Securities, predicted, “Given Trump’s crypto-friendly stance during his campaign, offering a direction different from existing policies, expectations for Trump’s pro-crypto policies are valid.” The expectation for the reprisal and swift passage of related legislation is growing, as a majority of lawmakers in both houses are perceived to hold crypto-friendly views.