A cartoon image of U.S. President-elect Donald Trump holding a virtual currency token painted in front of the White House to commemorate the inauguration ceremony is displayed at a Coin Hero store in Hong Kong, China, on Monday, January 20, 2025.
Paul Yong | Bloomberg | Getty Images
Bitcoin Other cryptocurrencies also fell from Monday’s highs as bullish investor sentiment around cryptocurrencies cooled following President Donald Trump’s inauguration.
The Official Trump token, which was launched last week to represent the new US leader, plunged 26% in 24 hours, according to data from CoinGecko. Meanwhile, a meme token released by first lady Melania Trump on Sunday has roughly halved in price in one day.
According to Coin Metrics, Bitcoin was trading at around $103,527.93. This is far from the lows of the past 24 hours, but down from the high of $109,350.72 reached before Trump took office. The overall cryptocurrency market, as measured by the CoinDesk 20 Index, remains below the flat line.
Cryptocurrency investors are hailing President Trump’s arrival in the White House as a positive moment for the industry. The president has promised to introduce supportive policies for cryptocurrencies, including a more accommodative regulatory framework and a federal Bitcoin vault.
Although Trump is seen as favoring cryptocurrencies, there were no specific policy announcements in this area at his inauguration ceremony on Monday. That appears to have been the main factor that changed the direction of the crypto market on Tuesday.
Morningstar President Kenneth Lamont has warned investors not to jump into crypto trading without being properly informed about the risks involved.
“Cryptocurrency markets could continue to soar if Donald Trump fulfills his campaign promises. But investors are holding back, resisting the sirens of fear of missing out. ,” Lamont said in an emailed comment Tuesday.
Cryptocurrencies are known to be unstable. Bitcoin, the world’s largest digital coin, has historically risen and fallen by thousands of dollars in a single day. Alternative coins, or “altcoins,” such as Ether and XRP have proven to be even more volatile.
“Fear of missing out is not an investment strategy. For many investors, the temptation to get rich easily is strong,” Lamont said, adding that individual investors “have bad market timing and buy and sell at the worst possible time.” There is a trend,” he added.
