$TRUMP, $Melania crypto tokens crash after Donald Trump's inauguration
PTC Web Desk: The inauguration of Donald Trump as the US President has had a noticeable impact on the cryptocurrency market, with digital assets experiencing a sharp pullback on Tuesday. Bitcoin, along with other digital currencies, including the newly launched Trump-branded token, saw a significant decline.
Bitcoin, which had reached an all-time high of $109,071 on Monday, retraced its steps and was last trading at $101,705.40, according to a Reuters report. Similarly, the value of the newly launched meme coin named after Trump plummeted by nearly 50%, dropping from a peak of $74.59 to $34.40.
The steep decline in the crypto market followed closely after Trump's inaugural address, in which he outlined plans to impose trade tariffs, amend immigration policies, deregulate energy, and offer relief for TikTok, but notably made no mention of cryptocurrencies. This omission left many in the crypto community disappointed, as they had high hopes for the new administration’s stance on digital assets.
Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, commented, "In the short term, there’s a chance this could be a sell-the-news event." Dibb added that many investors had anticipated executive actions related to digital assets on Trump’s first day in office.
"The market had high expectations about a Bitcoin strategic reserve and a loosening of regulations around digital assets, but these changes are more likely to be rolled out over months rather than days," Dibb continued. As a result, Bitcoin has already begun to retreat, and further volatility and sell-offs are expected.
Trump’s administration had been widely expected to introduce significant changes to cryptocurrency regulations. One key area of anticipation was the establishment of a "Bitcoin strategic reserve," which could help solidify Bitcoin’s credibility among institutional investors. Additionally, Trump appointed Mark Uyeda, a Republican member of the US Securities and Exchange Commission (SEC), as acting chair, and plans to nominate former SEC Commissioner Paul Atkins to lead the agency permanently.
Atkins, known for his support of crypto-friendly policies, is expected to reverse the crackdown on digital assets initiated by former President Joe Biden's SEC Chair Gary Gensler. Uyeda has also criticised the SEC for its lack of guidance on how crypto companies should register with the agency, signaling a potential shift in regulatory approach.
However, Trump’s involvement in the cryptocurrency market has raised concerns about potential conflicts of interest. Just before his inauguration, Trump launched the $TRUMP token and the $MELANIA token for First Lady Melania Trump, creating ethical questions regarding his business ties.
According to the official website, 80% of the Trump coin’s tokens are owned by CIC Digital, an affiliate of Trump’s business empire, and another entity called Fight, Fight, Fight. These connections have sparked debates about whether Trump's cryptocurrency ventures could present conflicts with his official duties.
- With inputs from agencies
