Bitcoin fell sharply on Tuesday, dropping 5.2% to $101,820 after reaching a record high of over $109,000 the previous day. The decline came as traders looked to President Donald Trump for clarity on his crypto policies following his inauguration and a series of executive orders.
Crypto markets react to Trump’s first day
Hopes for pro-crypto policies had driven a rally in Bitcoin and other digital assets ahead of Trump’s inauguration. However, the President’s initial executive orders did not address cryptocurrency, focusing instead on trade tariffs, energy, and social media regulations. This lack of clarity left the crypto market uncertain, contributing to Bitcoin’s sharp pullback.
Memecoin launch adds to volatility
Adding to the turbulence, Trump launched two memecoins, $TRUMP and $MELANIA, which sparked a mix of excitement and confusion among traders. While positively received by some, the unexpected move ramped up volatility in the crypto sector, already reeling from the lack of policy announcements.
What’s next for crypto?
Traders remain cautious as they await further signals from the Trump administration on its approach to cryptocurrency. The absence of immediate action on crypto policy has added uncertainty to a market already sensitive to broader economic and geopolitical factors.
As the new administration settles in, all eyes will be on Trump’s next moves and how they may shape the future of crypto regulation in the United States.
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