(Bloomberg) — Bitcoin has retreated from all-time highs amid volatility in the cryptocurrency market over Donald Trump’s inauguration as the 47th U.S. president.
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Traders expect Trump to issue pro-crypto policy directives as part of a series of executive orders. The largest digital asset stood at about $103,700 as of 4:25 p.m. in New York on Monday, down from its previous peak of $109,241.
“Crypto companies are upset that President Trump did not commit to anything specific regarding Bitcoin in his inaugural address,” said Matt Hogan, chief investment officer at Bitwise Asset Management. “My advice is, read that sentence again. We’re at the point where you would expect the president to mention Bitcoin in his inaugural address.”
Before taking the oath of office, President Trump and first lady Melania Trump announced a meme coin that disrupted the market by diverting the tide. Investors later embraced the idea that the move would further encourage President Trump to adopt crypto-friendly policies.
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Bloomberg News previously reported that President Trump is considering an executive order that would designate the asset class as a “national priority.” After previously branding Bitcoin a fraud, Trump became an ardent supporter of the digital asset industry during his campaign. He pledged to make the United States the crypto capital of the world and supported the idea of creating a strategic Bitcoin stockpile.
The broader cryptocurrency market beyond Bitcoin was mixed, including gains in Ether and XRP. The Trump meme coin was trading for about $40, according to statistics from aggregator CoinMarketCap, and the total market value reached more than $15 billion on Sunday, before plummeting.
Trump and Melania’s meme coins drew criticism from some industry executives, who said they risked making cryptocurrencies seem frivolous.
Others took a different view. Ben Elbaz, managing director of HushKey Global, said the Republican and his team will continue to support the Republican and his team as retail traders expect the administration to “prioritize and reaffirm its commitment to the crypto industry.” He said the debuted token further accelerated Bitcoin’s momentum.
Meme coins are a type of cryptocurrency with questionable intrinsic value and high volatility. They rely on social media tailwinds to push prices up, and even if they rise, they can fall quickly.
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