The cryptocurrency world held its breath as Donald Trump was sworn in as the 47th President of the United States. Market observers were paying close attention to his inaugural speech, hoping for signs of a bold policy shift or direct support for the digital assets sector. Yet while no explicit reference to cryptocurrency was made during his speech, the day’s developments painted a picture of cautious optimism within the sector.
Bitcoin surged above $106,500 during the inauguration, fueled by speculative hopes that the Trump administration would immediately defend digital assets. However, the recovery was short-lived. As Trump’s speech ended with no mention of cryptocurrency or Bitcoin’s strategic reserve, BTC fell sharply to $100,500, an intraday decline of 6%, and currently stands at $102,400.
The market as a whole reflects the volatility of Bitcoin. Tokens like $TRUMP and $MELANIA, which were riding the wave of political fervor, plunged 20% and 32%, respectively. Despite the initial sell-off, Bitcoin found support and rebounded into the $102,000-$104,000 range within hours, signaling continued bullish sentiment among investors.
Although the president’s speech was devoid of crypto-specific content, the actions of Trump-linked entities suggest a different narrative. World Liberty Financial, a decentralized finance (DeFi) initiative associated with the Trump family, purchased $112.8 million worth of cryptocurrencies on his first day in office, according to a report from The Block. Acquisitions included $47 million in Ether (ETH) and $47 million in Wrapped Bitcoin (WBTC), as well as smaller allocations in Aave (AAVE), Chainlink (LINK), Tron (TRX), and ENA.
Trump’s World Liberty Financial buys millions of ETH, LINK and AAVE with USDC
Trump’s World Liberty Financial spent millions on Ethereum, Chainlink and Aave, causing prices to surge. WLFI acquired 2,631 ETH, 41,335 LINK and 3,357 AAVE
This purchase commemorates the inauguration and positions World Liberty Financial as a key player in the crypto space. According to Arkham Intelligence, these acquisitions brought the project’s Ether holdings to 58,317 ETH, valued at $185.14 million, or more than half of its total portfolio.
Justin Sun, founder of Tron and advisor to World Liberty Financial, also confirmed Tron DAO’s additional $45 million investment in WLFI, the project’s native token. This brought Tron’s total investment in WLFI to $75 million, demonstrating strong institutional interest in Trump-aligned initiatives.
We @trondao We continue to increase our investment in World Liberty Financial, with an additional $45 million, bringing the total investment to $75 million. @worldlibertyfi @EricTrump @DonaldJTrumpJr @realDonaldTrump
– HE Justin Sun 🍌 (@justinsuntron) January 20, 2025
Speculation about possible executive orders or regulatory changes under Trump’s leadership sent crypto prices soaring in the months leading up to the inauguration. Many in the industry were hoping for immediate action, such as the creation of a strategic Bitcoin reserve or a regulatory clarity framework. However, experts warn that these developments are likely to occur gradually.
Meanwhile, the Trump administration’s initial policy documents sent to Republican lawmakers do not prioritize cryptocurrency, Punchbowl News reports, PANews reported. This tempered immediate enthusiasm but left room for long-term optimism.
Crypto advocates have expressed mixed reactions. While some expressed disappointment at the lack of direct acknowledgment in Trump’s speech, others pointed to World Liberty Financial’s significant investments as a tacit endorsement of digital assets. The coming months will reveal whether this administration can deliver on the lofty hopes of crypto advocates and investors.
