Trump has disappointed Bitcoin investors.
Trump, who once referred to himself as the "Crypto President," has returned to the White House with high hopes from cryptocurrency enthusiasts, many of whom expect him to drive up Bitcoin prices and bring greater legitimacy to the crypto industry. However, the reality has not lived up to expectations. During the first 100 days of his new administration, investor excitement quickly cooled.
Alice Liu, research director at the crypto data platform CoinMarketCap, stated in an interview: 'Market sentiment peaked around Trump's inauguration day, but has been on a downward trend ever since.'
She pointed out that the reasons for the cooling market sentiment are multifaceted, including uncertainty around Trump's trade policies and disappointment among investors regarding the meme coin named after him launched a few days before his inauguration. Additionally, the executive order signed by Trump to establish a national strategic Bitcoin reserve also failed to impress the market.
The 'Bitcoin reserve' plan primarily relies on Bitcoin reserves seized by the government in the past, rather than the government actively purchasing new coins. This passive Hold Positions approach lacks market stimulation, and if it were to shift to active purchasing, it would face significant political resistance.
The market's disappointment with Trump's "crypto policy" is also reflected in the prices. Bitcoin hit a record high of $109,225 on January 20, the day Trump was inaugurated. However, as of this Tuesday, $Bitcoin (BTC.CC)$ the price has dropped over 10% compared to that day, having previously fallen to around $74,500 on April 7, before recovering to approximately $95,400.
Despite the significant price fluctuations, some investors still recognize the regulatory shift, which is seen as a major divergence from the Biden administration's 'hostile regulation' strategy.
For example, after Trump regained power, the SEC in the USA withdrew lawsuits against several crypto companies, including Ripple.$Coinbase (COIN.US)$At the same time, the SEC abolished Accounting Bulletin No. 121 introduced in 2022, which required Banks to list crypto Assets as liabilities when safeguarding them for customers, a policy that had greatly limited the participation space for traditional Financial Institutions.
Additionally, Trump signed an executive order in January to establish a cryptocurrency working group, which is expected to create a federal regulatory framework for the issuance and operation of digital assets. However, as of now, investors are still waiting for more specific plans and policies to be released.
Eric Rose, head of digital asset trading at StoneX Digital, pointed out: "These are indeed very bullish measures for the crypto industry, but their effects will take time to manifest." He explained: "Allowing banks to participate in the digital asset space doesn't mean they will be able to launch services tomorrow. They need time to develop their global strategy, clarify their positioning, and recruit talent, which could take up to two years."
Market participants believe that to truly promote the widespread use of digital assets in the USA, the Trump administration needs to provide more substantive measures at the policy level, such as clarifying whether tokens are considered securities assets, while also advancing stablecoin legislation.
In addition, investors are also looking forward to the SEC approving.$Ethereum (ETH.CC)$ETFs participate in the "staking" Business, which is a mechanism to earn rewards by holding existing Cryptos and participating in the verification of blockchain network transactions. At the same time, the approval progress of ETFs for investing in assets outside of Bitcoin and Ethereum is also on the market's list of expectations.
Editor/Rocky
