Bitcoin and Ripple Decline as Trump Makes No Mention on Inauguration Day

Trump Meme Coin Issuance Also a Negative, Industry Criticizes "Reputation Damage"

"Regulatory Relaxation Will Occur Gradually Over Several Months"

Bitcoin and other cryptocurrencies, which surged on Trump's first day in office, along with a newly issued token named after Donald Trump, have all turned downward. This is attributed to disappointment over the lack of any policy mention regarding cryptocurrencies since the inauguration ceremony. Additionally, there is growing criticism from the industry that the issuance of meme coins by the Trump couple will significantly harm the digital asset industry's efforts to restore its reputation.

According to Reuters and Bloomberg on the 21st (local time), Bitcoin recorded an all-time high of $109,071 on Trump's inauguration day but fell over 5% to $101,705.40 on this day. Ethereum and Ripple fell by 3% and 5%, respectively.

According to CoinMarketCap, the Trump-branded meme coin, launched last Friday night, traded at $34.4 on this day. This is half of the $74.59 recorded on Monday. The coin was about $6.5 at launch. The Melania coin plummeted by 58%.

Trump's inaugural address included mentions of immigration, tariffs, energy deregulation, and even a temporary suspension of law enforcement against TikTok by China, but there was no mention of cryptocurrencies. According to the cryptocurrency industry, investors had expected some administrative measures to be announced on Trump's first day in office.

Matthew Dibb, Chief Investment Officer of the cryptocurrency asset management firm Astronaut Capital, said, "There is a possibility of a short-term news sell-off event."

"The market has high expectations for Bitcoin's strategic reserves and regulatory relaxation on digital assets, but this is likely to occur gradually over several months," Dibb pointed out. Therefore, greater volatility and selling are expected for the time being.

ETFs investing in Bitcoin also declined.

The cryptocurrency industry has criticized the Trump token and Melania token, meme coins launched just before the inauguration ceremony for Melania Trump. It is pointed out that it will harm the digital asset industry's efforts to restore its reputation.

Gabor Gurbacs, Strategy Director at digital asset investment firm VanEck and founder of PointsVille, criticized Trump's issuance of meme coins, saying it "took away trust in the United States and the U.S. presidency." He urged Trump to fire cryptocurrency advisors, stating that the impact of the Trump and Melania meme coin launch "has not even begun."

In a post on X, Balaji Srinivasan, an angel investor and former Chief Technology Officer at cryptocurrency exchange Coinbase, criticized the presidential family's issuance of meme coins, saying, "Meme coins are ultimately a zero-sum lottery where the last buyer loses everything."

Caroline Moran, co-founder of Orbit Markets, which provides liquidity for cryptocurrency derivatives, also criticized it as "a wild event that even the cryptocurrency industry could not imagine."

There are also concerns about ethical conflicts of interest.

According to the website, 80% of the Trump coin tokens are owned by CIC Digital, an affiliate of Trump's business, and another entity called Fight, Fight, Fight.

World Liberty Financial, a cryptocurrency project involving Trump and his children, announced that it raised $300 million through token sales the previous day and plans to issue additional tokens.

There is growing concern that meme coins can quickly attract billions of dollars in speculative funds without transparency.

Guest reporter Kim Jung-ah kja@hankyung.com