Bitcoin Plummets in Trump’s First 100 Days, Frustrating Crypto Bulls

Cryptocurrency supporters anticipated that Donald Trump, who dubbed himself the "crypto president," would boost Bitcoin prices and add credibility to the sector during his potential second term at the White House. However, the initial 100 days of his presidency have reportedly led to disappointment among many in this community.

"The excitement and positivity reached their peak during Trump's inaugural day, but since then, things have largely declined," Alice Liu, who leads research at CoinMarketCap, wrote in an email to Romero.my.id.

Various elements, including ambiguity surrounding Trump’s trade strategies and certain investor disgruntlement with the president’s initiation of new policies, contributed to the situation. namesake meme coin In the days leading up to the inauguration, these factors have led to a more pessimistic outlook, according to Liu.

Trump’s executive order to create a strategic bitcoin reserve Failed to win over investors seeking a more vibrant asset. The reserve predominantly depends on bitcoin seizures by the government instead of actively buying the cryptocurrency, which might encounter significant political obstacles.

Due partly to a downturn in market sentiment, Bitcoin dropped by 10.2% compared to its value one day prior to President Biden's inauguration on January 20th. On that particular day, Bitcoin reached an all-time high of $109,225. Earlier this month, similar to other risky investments, Bitcoin faced challenges primarily due to worries about tariffs, causing its price to fall under $74,500 on April 7th. However, as reported by the Dow Jones Market Data, it later recovered somewhat, trading near $95,400 by Tuesday afternoon.

Certainly, investors generally expressed satisfaction with the recent shift in regulatory attitudes toward cryptocurrency, seeing it as a departure from the Biden administration’s previous stance, which was perceived by many optimists as unfriendly.

When Trump assumed control of the Oval Office, the Securities and Exchange Commission dropped legal actions facing multiple cryptocurrency firms, such as the crypto trading platform Coinbase and the digital payments firm Ripple.

The SEC overturned accounting rules that previously prevented banks from offering cryptocurrency custodial services. After President Trump took office, the commission released updated guidelines to revoke what was known as Staff Accounting Bulletin No. 121, introduced in 2022, which mandated firms to list liabilities for the digital currencies they hold.

What’s more, Trump signed an executive order In January, they established a cryptocurrency task force aimed at proposing a national regulatory structure for the creation and management of digital assets. However, investors continued to await more specific proposals.

"Those factors are extremely positive for the sector, but realizing their full potential takes considerable time," observed Eric Rose, who leads digital asset trading at StoneX Digital.

Just because banks are allowed into the digital asset market doesn't mean they can flip a switch and suddenly be part of it, does it? They need time to develop a plan, determine their position within this sector, figure out implementation strategies, and recruit suitable personnel," Rose mentioned during an interview. He also noted that such processes might require as much as two years of preparation.

To genuinely encourage the uptake of digital assets under Trump’s policy, investors indicated that clearer regulations might be necessary, like categorizing tokens as securities. Additionally, members of the crypto sector have been anticipating legislative action concerning stablecoins.

They were also hopeful that the SEC would create opportunities for ether ETFs. engage in “staking,” A mechanism wherein users can obtain cryptocurrency rewards by utilizing their current crypto assets to confirm the validity of transactions within the supporting blockchain network. They also hoped for approvals of ETFs that focus on investing in cryptos lesser known than Bitcoin and Ethereum.

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