Crypto Market Takes a Breather After Trump’s Executive Order
The digital asset market is experiencing a correction, with Bitcoin dipping below $98,000 on Monday morning in Europe. This comes just days after President Donald Trump’s executive order recognized the industry as a key driver of US innovation. The original cryptocurrency has slid over 6.5%, while smaller tokens like Solana and XRP have fallen around 11% and 14%, respectively.
Regulatory Framework on the Horizon
Trump’s executive order has created a working group to advise the White House on crypto policy, with a focus on proposing a regulatory framework for digital assets in the US within six months. The group will also evaluate the creation of a crypto stockpile. While this move is seen as a positive step, the market had been expecting more concrete actions, such as the establishment of a Bitcoin reserve.
Market Reaction: A Mixed Bag
The digital-asset market initially took the executive order in stride, posting modest gains on January 24. However, the lack of a Bitcoin reserve announcement has led to disappointment among investors. “The market got 90% of what it wanted, but it was mostly priced in,” said Sean McNulty, head of APAC derivatives at FalconX. “Anything short of a Bitcoin reserve that immediately started buying BTC was going to disappoint.”
Trump’s Change of Heart
President Trump, once a crypto skeptic, has had a change of heart on the industry, partly due to its increased involvement in the election through political donations. He has pledged to make the US the world’s crypto capital and has appointed venture capitalist David Sacks as artificial intelligence and crypto czar.
A Breather After a Bullish Run
Bitcoin has surged over 50% since Trump’s election victory in early November. The market has been buoyed by pro-crypto regulatory appointments, new ETF product filings, and executive orders. However, the recent correction suggests that investors are taking a breather after a string of bullish news.
Global Market Impact
Asian stocks rose in early trade on Monday, despite trade war fears resurfacing after Trump ordered punitive sanctions on Colombia. US stock index futures tumbled amid concerns over an artificial intelligence model from China’s DeepSeek, which has disrupted the technology world and had a ripple effect on digital assets.
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