Bitcoin Price Drops as Crypto Policy Expectations Under Trump Remain Unfulfilled

Donald J. Trump’s first day as President ended without mention of Bitcoin or cryptocurrency, leading to a significant drop in Bitcoin’s price from $110,000 to $100,000. Despite the initial disappointment, the crypto community remains hopeful for future policy developments.

• No crypto executive orders on Trump’s first day.
• Bitcoin price dropped from $110,000 to $100,000.
• Analysts still expect crypto-related policies soon.
• Trump-backed WLFI made significant digital asset purchases.

As a long-time observer of Bitcoin, the absence of any crypto mention on Inauguration Day wasn’t entirely shocking. Industry analysts like Miles Deutscher and Will Clemente III quickly reminded us that this is just the beginning of the crypto saga.

“Tbh, it was unlikely Trump was going to mention crypto in his speech anyway. What matters is what happens over the coming days. There are already reports of pardoning Ross Ulbricht + and an executive order to allow banks to more easily hold digital assets. Patience,”

Deutscher noted. Meanwhile, Clemente III reassured the crypto community on X, stating,

“CT [Crypto Twitter, the online community of cryptocurrency enthusiasts] freaking out because Trump didn’t do anything with regard to crypto on the first day he got sworn in, we live in such a bubble. Pro crypto regs are coming.”

The absence of the promised Strategic Bitcoin Reserve was a letdown for many. Bloomberg ETF expert James Seyffart captured the sentiment, saying,

“Not quite the Strategic Reserve everyone is looking for.”

Yet, the world of crypto thrives on speculation and strategy, and the Trump-backed World Liberty Finance (WLFI) made headlines by purchasing $47 million each of ETH (Ethereum) and wrapped Bitcoin (WBTC, a type of Bitcoin tokenized on the Ethereum blockchain), alongside smaller investments in Aave, Chainlink, TRX, and ENA on Inauguration Day. This move hints at a long-term accumulation strategy, suggesting that the lack of immediate executive action might not reflect the administration’s overall stance on digital assets.

Felix Jauvin, host of “Forward Guidance,” offered a potential workaround for the Strategic Reserve, suggesting,

“If Trump truly wanted to do the most discreet bitcoin buying for strategic reserve with best execution, it would be via the Exchange Stabilization Fund of the Treasury (a special fund used by the government for financial stability) that requires no congressional approval or executive order and is only updated annually. Could accumulate for a year discreetly unilaterally then announce.”

This insight provides a glimmer of hope for those eager to see a robust Bitcoin reserve established.

Adding fuel to the speculation, Elon Musk’s cryptic comment on X,

“Ross will be freed too,”

sparked rumors of a potential pardon for Ross Ulbricht, the founder of Silk Road. This could have significant implications for the crypto community’s sentiment and advocacy for privacy and decentralization. Circle CEO Jeremy Allaire also weighed in, predicting an executive order that would ease regulatory restrictions for banks, possibly involving the repeal of the SEC’s Staff Accounting Bulletin (SAB 121, a regulatory guideline affecting how banks handle digital assets).

Amidst these developments, BTC Inc. CEO David Bailey provided a glimmer of hope, stating,

“Got confirmation tonight that our EOs are among the first 200. I have no idea what made it in, but good news cometh.”

This confirms that executive orders related to Bitcoin or crypto are on the horizon, suggesting that the wait might soon be rewarded.

While Day 1 brought no immediate crypto thunder, the whispers and actions behind the scenes paint a picture of a cautiously optimistic future for Bitcoin and the broader cryptocurrency landscape. The market may have been jolted, but the foundation of hope and speculation remains unshaken.

Key Takeaways and Questions

• What was the immediate market reaction to Trump’s lack of mention of crypto on his first day in office?

  Bitcoin’s price dropped significantly from $110,000 to $100,000 due to the absence of any crypto-related announcements.

• What are industry observers predicting about future crypto-related policies under Trump?

  Observers like Miles Deutscher and Will Clemente III predict that pro-crypto regulations and executive orders are forthcoming, despite the initial silence.

• What specific actions has the Trump-backed World Liberty Finance taken regarding digital assets?

  WLFI purchased $47 million each of ETH and wrapped Bitcoin (WBTC), alongside smaller investments in Aave, Chainlink, TRX, and ENA.

• What potential regulatory relief is anticipated for banks regarding digital assets?

  Jeremy Allaire of Circle predicted an executive order that would allow banks to hold digital assets more easily, possibly involving the repeal of the SEC’s Staff Accounting Bulletin (SAB 121).

• What is the significance of the Exchange Stabilization Fund mentioned by Felix Jauvin?

  Jauvin suggested that the fund could be used for discreet Bitcoin accumulation without requiring congressional approval or an executive order, providing a strategic approach to building a reserve.

• What is the current status of executive orders related to Bitcoin or crypto according to David Bailey?

  David Bailey confirmed that executive orders related to Bitcoin or crypto are among the first 200 planned, indicating that policy actions are imminent.