Bitcoin’s value drops below $104,000 after former President Trump remains silent on cryptocurrency following his inauguration.
Defying expectations of a post-inauguration surge, BTC’s value dropped by over 5.7% relative to the US dollar, sparking a broader downturn in the cryptocurrency market. Although this decline was notable, many cryptocurrencies, including bitcoin, still maintained a higher market’s total capitalization has risen by a modest.55 trillion, indicating a generally stable market.
There has been a significant uptick in trading activity, with volumes increasing by 21% since Sunday. In the last 24 hours, there was a total turnover of $354 billion in cryptocurrencies. Among these transactions, $171 billion were related to tether (USDT), while bitcoin accounted for $132 billion. However, not all digital coins performed well on this day—MELANIA, a meme token introduced by the wife of the 47th President, experienced the biggest decline, losing 52.11% of its value. Similarly, the meme coin POPCAT saw a decrease of 12.95% over the course of the day.
According to coinglass.com data, around $826.58 million worth of trades were closed forcefully within the crypto derivatives markets in the previous day. Among these, approximately $553.2 million were related to long positions. Over the same timeframe, the derivatives sector witnessed 278,464 traders facing liquidations. Notably, Bitcoin and Ethereum were at the forefront of these liquidations, with BTC long positions representing about $214 million. Furthermore, the liquidation of TRUMP long positions totaling $34.81 million added to the overall losses in derivatives for the day.
Even though there was a lot of excitement about Trump’s comeback to the public sphere, the response from the cryptocurrency market turned out to be less enthusiastic than anticipated. By choosing not to discuss digital currencies in his first speech back, Trump’s decision dampened expectations for a market upsurge. This highlighted a disconnect between political events and the market dynamics of bitcoin (BTC) and the cryptocurrency industry. While there were some minor gains in the market, the lack of a direct impact from politics on crypto values emphasizes that other factors investor attitudes on that day.
In a separate development, Trump revealed intentions to sign executive orders that would put a freeze on the recruitment of new IRS personnel and mandate a swift return to office-based work for all federal staff. Elsewhere World Liberty Financial, a decentralized finance project, made notable investments, acquiring substantial amounts of various cryptocurrencies, including $47 million worth of ETH and WBTC, and $4.7 million each of AAVE, LINK, TRX, and ENA.
