In a closely watched first day in office, US President Donald J. Trump did not issue any crypto-related executive orders nor did he acknowledge the Bitcoin strategic reserve he promised at the conference Bitcoin 2024 in Nashville. Despite widespread speculation and Bitcoin briefly soaring to nearly $110,000 in anticipation of the ceremonies, the inaugural address made no mention of Bitcoin or crypto.
Bitcoin and crypto omitted by Trump on day one
Following Trump’s silence on crypto, the price of Bitcoin plunged from $110,000 to $100,000, revealing a wave of volatility that shook short-term traders. However, some industry observers say the initial negativity on the first day may not reflect the long-term policy direction.
“Tbh, Trump was unlikely to mention crypto in his speech anyway. What matters is what happens in the days to come. There are already reports of a Ross Ulbricht+ pardon and a decree making it easier for banks to hold digital assets. Patience,” wrote Miles Deutscher via X.
Likewise, industry analyst Will Clemente III sought to calm nervous market participants with a broader view: “CT (Crypto Twitter) is panicking because Trump didn’t do anything regarding crypto on day one where Trump was sworn in, we live in such a bubble. Pro crypto regulations are coming.
In a statement reported by Reuters, Circle CEO Jeremy Allaire predicted that President Trump “may soon sign an executive order” to make it easier for banks to own digital assets. Allaire specifically called for the repeal of the SEC’s Staff Accounting Bulletin (SAB 121), which places restrictions on the ability of financial institutions to hold cryptocurrencies on their balance sheets. “It’s something I think I’ll be watching closely in terms of EOs (executive orders),” Allaire told Reuters.
Adding to the speculation, Elon Musk responded to a user on Crypto analyst Byzantine General (@ByzGeneral) interpreted Musk’s remark as a significant indicator of potential future moves, remarking: “We could be back.” Trump could simply save all of his crypto-related executive orders for later in the week.
However, disappointment remains for now regarding the promised Bitcoin Strategic Reserve, an initiative mentioned by the president during his campaign and at the Bitcoin 2024 conference. Although no official announcement has materialized, the Bloomberg ETF expert , James Seyffart, reacted to the news about X with: “It’s not quite the strategic reserve that everyone is looking for. »
Seyffart was referring to an article by Donald Trump Jr., which revealed that Trump-backed crypto firm World Liberty Finance (WLFI) made large purchases of digital assets on Inauguration Day. World Liberty Finance purchased $47 million each in ETH and Wrapped Bitcoin (WBTC), as well as $4.7 million each in Aave, Chainlink, TRX, and ENA.
Highlighting a potential long-term approach to Bitcoin accumulation, Félix Jauvin, host of the “Forward Guidance” podcast, commented: “If Trump really wanted to make the most discreet purchase of bitcoins for a strategic reserve with the best execution, it would be via the exchange stabilization system. A Treasury fund that does not require congressional approval or executive orders and is updated only once a year. Could accumulate for a year quietly unilaterally then announce. Of course, this assumes that the goal is to accumulate at the best price. We have no idea, but I hope this context is helpful.
Meanwhile, David Bailey, CEO of BTC Inc., writes today via X: “I received confirmation this evening that our EOs are top 200. I have no idea what happened, but good news is coming. He clarified: “EOs related to Bitcoin or crypto”.
Although President Trump’s inaugural silence on crypto may have dampened market sentiment, industry executives maintain that upcoming policy decisions and possible executive actions remain on the horizon. For now, the broader crypto community awaits clarity on the White House’s plans for a Bitcoin reserve, regulatory relief for banks, and the potential pardon of Silk Road founder Ross Ulbricht.
At press time, BTC was trading at $101,451.
Featured image from YouTube, chart from TradingView.com
