
Summary
- Bitcoin levels off following its initial spike sparked by Trump.
- The $TRUMP token is being examined for possible conflicts of interest.
- Trump claims his kids will handle his money.
- An executive directive safeguards cryptocurrency companies' banking services.
- prohibits the creation of a digital currency issued by the US central bank
Reuters, New York, Singapore, and Paris, January 24 Friday saw a little increase in cryptocurrency markets, which are still below recent highs despite President Donald Trump’s directive to appoint a new working group to draft long-awaited industry rules and investigate the establishment of a U.S. coin stockpile.
Since Trump took office on Monday, the price of Bitcoin has remained relatively stable, reaching a new high of $109,071. As some of the excitement surrounding a hoped-for revolution in cryptocurrency regulation subsided, it was last trading at about $106,000 on Friday.
Since Trump’s election victory in November, Bitcoin has experienced some of the most spectacular “Trump trades,” rising 50% to break above $100,000 and reaching new highs.
Trump courted cryptocurrency campaign funds by promising to be a “crypto president” and to undo the Biden administration’s crackdown on the sector. This week, his government started to fulfill that promise.
He praised the digital asset sector as “crucial” to American innovation in an executive order issued Thursday. He also established a working group to draft new crypto regulations and investigate a crypto stockpile, and the Securities and
Exchange Commission (SEC) raised accounting guidelines that the sector claimed had impeded the adoption of cryptocurrencies.
Despite their lack of specificity, the actions appeared to allay some dissatisfaction following Trump’s flurry of day-one statements on Monday that did not include crypto reform.
Bitcoin was up 2.8% on the day at $106,048 at 1714 GMT, while ether, a smaller cryptocurrency, was up 4.1% at $3,383.
“What we’re seeing is a little bit of profit taking in line with the uncertainty we’re seeing from Trump now,” said Nick Twidale, Chief Market Analyst at Sydney-based ATFX Global.
“He’s not reneging on some of his promises, but they’re probably not going to come through as hard and fast.”
$TRUMP TOKEN
Trump-affiliated cryptocurrency endeavors, such as World Liberty Financial tokens and the meme coin $TRUMP, have experienced a decline in value in recent days.
According to CoinMarketCap, the $TRUMP cryptocurrency, which was introduced last Friday, was now trading at about $32.62. It has dropped over half of its value since reaching its peak on Sunday at $75. At the start of Sunday, it was trading below $10.
Top Democratic Senator Elizabeth Warren questioned U.S. authorities on Thursday about Trump’s coin and a similar $MELANIA meme coin introduced by First Lady Melania Trump, joining a chorus of critics who have suggested the currencies create ethical concerns.
“$TRUMP and $MELANIA present grave risks to President Trump’s ability to impartially govern our nation—and to investors in these coins,” the letter read.
EXECUTIVE ORDER
The executive order issued on Thursday also prohibited the creation of digital currencies issued by the U.S. central bank, which might compete with bitcoin and other well-known tokens, and mandated that banking services for cryptocurrency businesses be protected.
The working group’s deadline for submitting a report that suggests regulatory modifications and assesses the feasibility of establishing a nationwide digital asset stockpile is July.
According to analysts, bitcoin’s price increases may pause until the policy instructions’ ramifications are more apparent.
“The absence of an explicit bitcoin strategic reserve left the crypto market limping into the weekend, even though President Trump’s much-anticipated executive order on cryptocurrency largely fulfilled his campaign promises,” stated Jehan Chu, founder of Kenetic Capital, a blockchain venture capital firm based in Hong Kong.
FAQ
Trump’s initial policy actions created optimism in the cryptocurrency market, stabilizing Bitcoin’s price at around $106,000, despite earlier volatility. His executive orders aimed to support innovation while safeguarding banking services for crypto businesses.
The $TRUMP token is a cryptocurrency linked to Trump-affiliated endeavors. It has faced criticism, including from U.S. Senator Elizabeth Warren, for potential conflicts of interest and ethical concerns about its impact on impartial governance.
The executive order prohibits the creation of U.S. central bank digital currencies, signaling support for decentralized cryptocurrencies like Bitcoin and ensuring they face less competition from government-issued digital assets.
Trump’s administration has established a working group to draft comprehensive crypto regulations and explore the feasibility of creating a national digital asset stockpile. The group’s findings are expected in July.
While Bitcoin saw a slight increase, broader market reactions have been cautious, with some profit-taking and uncertainty about the long-term implications of Trump’s policies. Altcoins like Ether also saw moderate gains, reflecting mixed sentiment in the market.