(Bloomberg) — Bitcoin retreated from a record high as traders awaited crypto policy directives from President Donald Trump following his inauguration.
Most read on Bloomberg
The market was expecting an executive order in favor of the digital assets sector, but it did not appear in Trump’s series of actions on his first day in office. Instead, he focused on topics like immigration, trade, energy and TikTok.
The original cryptocurrency changed hands at around $103,800 as of 7:11 a.m. Tuesday in New York. The token reached a high of $109,241 before Trump’s inauguration before falling again. Most other digital assets also faltered.
“It is premature to draw firm conclusions from the lack of an immediate executive order,” given that the Trump administration has a range of priorities, said Richard Galvin, co-founder of the DACM hedge fund. “Markets have shown resilience, suggesting that investors are taking a similar, longer-term view. »
Trump tokens
Before the inauguration, Trump and his wife Melania unveiled memecoins that shook the market by diverting flows. Investors then embraced the idea that the move would further incentivize Trump to adopt crypto-friendly policies.
Bloomberg News previously reported that Trump was considering an executive order designating the asset class as a “national priority.” Trump became a vocal supporter of the digital asset industry on the campaign trail, after once calling Bitcoin a scam. He pledged to make the United States the crypto capital of the world and supported the idea of creating a strategic Bitcoin stockpile.
While it’s surprising that Trump hasn’t issued an executive order “praising” crypto, “there should be one” although it may not be “substantial,” Jaret wrote Seiberg, an analyst at TD Cowen, in a note.
The Trump memecoin was trading at around $37, according to figures from CoinMarketCap. It reached an overall market value of more than $15 billion on Sunday, but fell below $7.5 billion on Tuesday.
Memecoin Review
Trump and Melania’s memecoins drew criticism from some industry executives, in part because they were concerned about making crypto seem frivolous.
Others took a different view. Ben El-Baz, chief executive of HashKey Global, said the tokens launched by the Republican and his team have further accelerated Bitcoin’s momentum, as retail traders wait for his administration to “prioritize and reaffirm its commitment towards the crypto industry”.
