The $TRUMP cryptocurrency, launched last Friday, has dropped by 50% from its peak, trading at $37.98 on Tuesday after reaching $75 on Monday.
The token, launched at $6.50, had a market value exceeding $14 billion during its peak, but investor enthusiasm has cooled following U.S. President Donald Trump’s first policies, which made no mention of cryptocurrencies.
Bitcoin also saw a decline, falling to $102,546.13 by 1001 GMT on Tuesday from its record high of $109,071 on Monday, when Trump was sworn in as the 47th president. Despite the drop, Bitcoin remains up 9.5% for January.
Crypto exchange-traded funds (ETFs) were affected as well, with the ChinaAMC Bitcoin ETF shedding nearly 6%. The crypto market rally in late 2024, fueled by expectations of Trump introducing favorable crypto policies, has cooled as his inaugural speech focused on other areas, such as trade, immigration, and energy deregulation.
Trump has initiated leadership changes at the U.S. Securities and Exchange Commission (SEC), appointing Mark Uyeda as acting chair and signaling plans to nominate Paul Atkins for the permanent role. These moves are seen as favorable for the crypto industry, as Atkins is expected to reverse the SEC’s stricter approach under former Chair Gary Gensler.
Meanwhile, Trump-linked projects such as the $MELANIA token and World Liberty Financial’s $300 million token sale have drawn scrutiny. Eighty percent of $TRUMP tokens are owned by CIC Digital, an affiliate of Trump’s business, and another entity, Fight, Fight, Fight. These tokens are described as symbolic and not investments, raising conflict-of-interest concerns.
The crypto market continues to monitor Trump’s policies and their potential impact on the volatile asset class.
