Crypto Markets React to Trump’s Inauguration as 47th US President

The cryptocurrency world held its breath as Donald Trump was sworn in as the 47th President of the United States. Market watchers were keenly attuned to his inaugural address, hoping for signs of a bold policy shift or direct support for the digital asset industry. Yet, while no explicit references to cryptocurrency were made during his speech, the day’s developments painted a picture of cautious optimism within the sector.

Bitcoin surged past $106,500 as the inauguration unfolded, fueled by speculative hopes that Trump’s administration would immediately champion digital assets. However, the rally was short-lived. As Trump's speech concluded without mention of cryptocurrency or a strategic Bitcoin reserve, BTC pulled back sharply to $100,500, a 6% intraday decline, and currently sits at $102,400.

The broader market mirrored Bitcoin’s volatility. Tokens like $TRUMP and $MELANIA, which had been riding the wave of political fervor, nosedived by 20% and 32%, respectively. Despite the initial selloff, Bitcoin found support and rebounded to the $102,000–$104,000 range within hours, signaling continued bullish sentiment among investors.

While the president’s address was devoid of crypto-specific content, actions from Trump-linked entities suggested a different narrative. World Liberty Financial, a decentralized finance (DeFi) initiative associated with Trump’s family, purchased $112.8 million worth of cryptocurrencies on his first day in office, according to a report by The Block. The acquisitions included $47 million in Ether (ETH) and $47 million in Wrapped Bitcoin (WBTC), alongside smaller allocations in Aave (AAVE), Chainlink (LINK), Tron (TRX), and ENA.

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 over half of its total portfolio.

Justin Sun, founder of Tron and an advisor to World Liberty Financial, also confirmed Tron DAO’s additional $45 million investment in WLFI, the native token of the project. This brought Tron’s total investment in WLFI to $75 million, signaling strong institutional interest in Trump-aligned initiatives.

Speculation about potential executive orders or regulatory shifts under Trump’s leadership had turbocharged crypto prices in the months leading up to the inauguration. Many in the industry had hoped for immediate action, such as the establishment of a Bitcoin strategic reserve or a framework for regulatory clarity. However, insiders caution that such developments are likely to unfold gradually.

Meanwhile, the Trump administration’s initial policy documents sent to Republican lawmakers do not prioritize cryptocurrency, according to reports from Punchbowl News, PANews reported. This tempered immediate enthusiasm but left room for optimism in the long term.

Crypto advocates expressed mixed reactions. While some voiced disappointment over 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 meet the lofty hopes of crypto advocates and investors.