Despite Trump not mentioning Bitcoin in his first speech, experts believe his administration will soon make the cryptocurrency a priority.
‘Golden Age’ without cryptocurrency
On January 20, Donald Trump returned to the White House as the 47th President of the United States and gave an inauguration speech promising a ‘golden age’ for the United States.
His speech touched on topics such as unity, economic strength, and border control, while touching on key issues such as inflation, immigration, and energy production.
However, the cryptocurrency community noticed a glaring omission: despite the Trump family’s recent involvement in the cryptocurrency industry, there was not a single mention of cryptocurrency or Bitcoin (BTC).
On January 17, Donald Trump announced his own meme coin, “Official TRUMP,” a bold and unexpected move. Not to be outdone, Melania Trump released her own “official Melania meme” (MELANIA) two days later.
Both tokens generated explosive hype and sent millions of traders into a frenzy. Despite their initial success, their value quickly plummeted, but they still maintain massive market capitalizations in the billions of dollars.
Meanwhile, Bitcoin reached a happy milestone, climbing to an all-time high of $109,020 just hours before President Trump’s inauguration. But the celebration was short-lived. As of January 21, the price of BTC had fallen nearly 5% to $103,000.
Analysts believe the decline is the result of a combination of profit-taking by traders and market uncertainty sparked by Trump’s silence on cryptocurrencies.
So what has happened since Trump took office, and what can we expect going forward? Let’s find out.
It’s a day of action, but not for cryptocurrencies
The cryptocurrency world held its breath as Trump returned to the White House. Whispers of an executive order that could change the fortunes of the cryptocurrency industry dominated chatter before the inauguration.
There have been rumors of plans to create a strategic Bitcoin reserve, establish a cryptocurrency advisory board, and even ban the creation of central bank digital currencies. Expectations were soaring. It seemed like the first day could be a defining moment for the industry.
Instead, reality came with some disappointment. Trump’s first day in office was filled with a variety of actions, including the signing of 80 executive orders in succession that overturned the policies of the previous administration.
Federal employees were ordered to return to the office, the United States withdrew from the Paris Agreement and the World Health Organization (WHO), and new federal regulations were put on hold. On January 6th, rioters also saw federal charges dismissed.
But despite all the massive changes, cryptocurrencies have not been successful. Any hope of clarity on the first day was lost because priorities were elsewhere.
But not all hope is lost. Fox Business reporter Eleanor Terrett recently hinted at a big move potentially still on the horizon.
In a tweet that sparked conversation across the digital finance community, she suggested that Trump may yet sign an executive order banning CBDCs and establishing an official cryptocurrency commission.
Her words echo those of Jeremy Allaire, CEO of Circle, the parent company of USDC (USDC). He also expressed optimism.
Allaire believes the Trump administration could soon ease restrictions on banks holding digital assets, including the repeal of the SEC’s Staff Accounting Bulletin 121, a long-standing barrier to financial institutions interested in cryptocurrencies.
The cryptocurrency industry is eager for rapid progress, but industry pioneers have urged patience. Binance founder CZ recently tweeted, “Everyone expects everything to happen in one day. Good things take time.”
Optimism shining in silence
As the cryptocurrency industry grapples with uncertainty, a notable announcement from Donald Trump Jr. took center stage on January 20th.
Just hours after his father’s inauguration, Trump Jr. revealed a series of strategic investments by World Liberty Financial (WLFI), a DeFi project launched by the Trump family in 2024.
Allocations include $47 million each for Ethereum (ETH) and Wrapped Bitcoin (wBTC), and $4.7 million each for Aave (AAVE), Chainlink (LINK), TRON (TRX), and Ethena (ENA). The total is over 120 million dollars.
Policy clarity may be lagging, but the Trump family is betting on the future of cryptocurrency. Meanwhile, behind the scenes, the Trump administration is revamping the regulatory era.
After former Securities and Exchange Commission Chairman Gary Gensler officially resigned on January 20, Mark Uyeda, a famous cryptocurrency advocate, took over as acting SEC Chairman.
President Trump has nominated former SEC official and cryptocurrency advocate Paul Atkins to permanently serve as SEC Chairman.
At the Commodity Futures Trading Commission, Caroline Pham earned a reputation for thoughtful consideration of blockchain technology in her role as Acting Chair.
The CFTC could become the leading federal watchdog for cryptocurrencies, with nascent legislative efforts allowing it to oversee cryptocurrency spot markets for widely traded tokens.
It’s unclear whether Pham will become President Trump’s permanent top nominee, but her name is constantly mentioned on shortlists for the position.
Notably, in 2023, Pham announced a pilot program for cryptocurrency supervision, citing a proactive stance on digital asset regulation.
Even the FDIC, which had been at the forefront of controversies such as ‘Operation Choke Point 2.0’ in the past, is undergoing changes, with Chairman Marty Gruenberg stepping down just before Trump’s inauguration.
The future of cryptocurrencies during Trump’s second term remains uncertain, but exciting. Although his administration’s first-day silence has left many feeling intimidated, the signs of movement are there.
Will there be better days ahead?
The Trump administration’s second term began with more questions than answers about the cryptocurrency industry. There has been no immediate executive order addressing digital assets, but experts urge patience.
“In the absence of an immediate executive order, it is premature to draw strong conclusions,” said Richard Galvin, co-founder of hedge fund DACM, reflecting the administration’s broader competing priorities.
Hints of progress behind the scenes also added to the optimism. “Our EO is one of the first 200,” David Bailey of Bitcoin Magazine suggested, while acknowledging uncertainty about what specific measures could make the cut.
If these executive orders address issues such as regulatory frameworks or imply a cryptocurrency council or strategic reserves, it could significantly boost market confidence.
Bitcoin’s recent performance has further heightened expectations. In just one week, the price surged from $88,000 to $108,000, a new all-time high.
Analysts such as Michaël van de Poppe have emphasized the importance of maintaining support above $100,000 for continued upward momentum.
But he also warned that failure to maintain this level could lead to a downward trend. Meanwhile, a weak US dollar and falling yields strengthened altcoins.
Furthermore, the path for cryptocurrencies under the Trump administration remains uncertain but is full of potential. Executive orders can emerge as defining moments that provide clarity on key issues. But lack of immediate action does not sound the alarm.
Bitcoin’s ability to sustain its recent gains, the broader market’s reaction to potential policy changes, and the macroeconomic backdrop will all play a role in shaping its next steps.