Trump's Inauguration Triggers Cryptocurrency Market Turbulence

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The recent inauguration of Donald Trump as President of the United States has had a notable impact on the cryptocurrency markets. Following his oath-taking on January 20, there was a significant decline in the value of many digital assets, including Bitcoin and a newly introduced meme coin associated with Trump.

Bitcoin, which had reached an all-time high of $109,071, saw its price drop to $101,705.40 shortly after. Meanwhile, the meme coin branded after Trump experienced a dramatic fall, plummeting nearly 50% from a peak of $74.59 to just $34.4.

Analysts speculate that the decline may be linked to Trump's inaugural speech, where he outlined plans for trade tariffs and immigration policy but omitted any mention of cryptocurrency regulations. This lack of reference left many investors feeling disappointed, as there was anticipation that Trump's administration would introduce favorable regulations for digital assets.

Matthew Dibb, chief investment officer at Astronaut Capital, expressed concerns that investors may be undergoing a "sell-the-news event," as hopes for immediate regulatory changes or a "Bitcoin strategic reserve" seem less likely. Trump has appointed Mark Uyeda as acting chair of the U.S. Securities and Exchange Commission, with expectations for regulatory shifts coming slowly.

Additionally, Trump's foray into the cryptocurrency market has raised eyebrows regarding potential conflicts of interest, especially considering that approximately 80% of the newly launched $TRUMP token is owned by a subsidiary of his business. Ethic experts continue to voice concerns about the implications of the President's personal involvement in the crypto space.

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