On January 20, President Donald Trump unveiled his administration’s main focus areas, collectively referred to as “America First Priorities.” However, he notably sidestepped any mention of cryptocurrencies or his earlier vow to create a Bitcoin reserve.
Trump’s Agenda and Cryptocurrencies
In a briefing at the White House, Trump laid out his agenda, emphasizing goals like improving public safety, achieving energy independence for enhanced affordability, streamlining government functions, and restoring traditional American values. While his former support for cryptocurrencies was well-publicized, these digital currencies were strikingly absent from his immediate plans. Nonetheless, industry analysts hold the belief that if Trump secures a second term, cryptocurrencies could take center stage.
Market Reactions and Speculations
On that same day, the crypto market buzzed with speculation regarding a potential executive order from Trump to establish a strategic Bitcoin reserve. Although this order didn’t materialize on January 20, traders on Polymarket assessed the probability of such a reserve launching in the initial 100 days of Trump’s next term at about 33%. A different betting platform, Kalshi, presented an even more optimistic view, with participants estimating around a 60% chance of implementation within the year.
Cryptocurrency Volatility and New Developments
In the 72 hours following these announcements, the cryptocurrency arena experienced significant volatility. A new memecoin launched by Trump on the Solana blockchain stirred mixed reactions among crypto enthusiasts. Dubbed Official Trump (TRUMP), this coin skyrocketed more than 490% during its first day of trading, propelling it into the ranks of the top 30 tokens. According to CoinGecko, the market capitalization for TRUMP surged to nearly $11 billion.
Concurrently, Bitcoin (BTC) reached extraordinary heights just before Trump’s inauguration, briefly crossing the $109,000 mark before settling around $104,000. Despite the dramatic shifts in its value, Bitcoin has rallied nearly 50% since Trump’s election victory on November 5. This growth reflects the optimism surrounding the upcoming administration’s potential to foster a supportive regulatory environment for cryptocurrencies, as well as to enhance their political legitimacy.
Source: Cointelegraph
