Bitcoin’s price rollercoaster continued this week as speculation over the Trump administration’s stance on cryptocurrency drove extreme market fluctuations. The leading digital asset surged to an all-time high of $109,000 early Monday, just hours before Trump’s inauguration, only to nosedive 9% to $100,000 after the administration failed to deliver immediate crypto-related policy announcements.
A post-inauguration document outlining the president’s priorities made no mention of digital assets, leaving investors disappointed. Expectations of a crypto-focused executive order—among the 26 Trump signed immediately after taking office—also went unmet, compounding market uncertainty.
“There was probably some hope that crypto-related executive orders would be part of Trump’s first slew of actions,” said Matthew Sigel, head of digital assets research at asset manager VanEck.
SEC Announces Crypto Task Force, Markets Respond
Despite the initial setback, some clarity emerged on Tuesday when the U.S. Securities and Exchange Commission (SEC) announced the formation of a dedicated crypto task force. According to the agency, this new group will focus on developing a “comprehensive and clear regulatory framework for crypto assets.”
The market reacted positively, with Bitcoin rebounding 3% in the last 24 hours, reaching $107,000—just shy of its pre-inauguration peak.
What’s Next? Investors Eye Trump’s Crypto Moves
As speculation grows over Trump’s approach to crypto regulation, analysts suggest the administration may reverse Biden-era policies that emphasized strict legal enforcement. In particular, the repeal of a 2022 executive order that prioritized scrutiny of digital assets could be on the horizon.
Beyond regulatory rollbacks, there is growing talk that the administration could take bold steps to position cryptocurrency as a national priority. Possible measures include:
- Designating crypto a strategic asset to ensure American leadership in blockchain innovation.
- Establishing a federal Bitcoin reserve to hedge against economic volatility.
- Halting government sell-offs of seized Bitcoin, which could support price stability.
With crypto markets hanging on Trump’s every move, the coming weeks will be crucial in determining whether his administration will embrace digital assets or leave investors in limbo.