Cryptocurrency Markets Fluctuate as Trump Re-Enters Office
On January 20, 2024, the cryptocurrency market experienced volatility following the inauguration of Donald Trump as President for a second term.
Bitcoin's Price Rollercoaster
Leading up to the inauguration, Bitcoin (BTC-USD) reached an all-time high of over $109,000, only to drop below $101,000 after Trump's speech.
Regulatory Promises and Expectations
In 2024, Trump pledged to make the United States the "crypto capital of the planet." While his inaugural address did not address specific crypto policies, an executive order focused on the industry is anticipated later today.
David Sacks, Trump's appointed crypto czar, expressed optimism about the future of crypto in the US, stating that "the reign of terror against crypto is over."
Trump's Personal Crypto Venture
Trump and his team have launched meme coins on the Solana blockchain: TRUMP and MELANIA. According to disclosures, Fight Fight Fight LLC and CIC Digital LLC, affiliated with the Trump Organization, control 80% of the coins' supply.
Meme Coin Frenzy
Despite skepticism from some, major crypto exchanges, including Coinbase Global (COIN), Robinhood (HOOD), and Binance, plan to list the Trump meme coins. This has attracted investor interest, with Solana's trading volume surpassing other blockchains over the past 48 hours.
Analyst Perspectives
Bernstein analyst Gautam Chhugani believes Trump's coin signals a new era of crypto regulation and investment. However, he cautions that investors may face short-term disappointment if regulatory developments do not meet expectations.
Dan Hughes, CTO of crypto platform Radix, views the inauguration as an unprecedented event for crypto markets. He predicts that investors may be underwhelmed if executive orders are not significant or timely.