On Monday, following Donald Trump’s inauguration and address—an event that made no mention of bitcoin or crypto assets—the cryptocurrency market experienced a pullback. Bitcoin fell 5.7% from its all-time high (ATH) of $109,356 recorded on Jan. 20, slipping to $103,092 per coin.
Bitcoin Sinks Below $104K Following Trump Inauguration Silence on Crypto
Contrary to predictions that BTC prices might climb following Trump’s swearing-in ceremony, the asset instead declined more than 5.7% against the U.S. dollar, triggering declines across several other cryptocurrencies. Despite this dip, most coins, including bitcoin, still traded higher than their prices from the previous day. The global cryptocurrency market’s overall valuation currently stands at $3.55 trillion, reflecting a moderate 1.5% uptick.
Trading activity has increased notably, with volumes rising 21% compared to Sunday. Over the past 24 hours, $354.87 billion in crypto assets have changed hands. Of this, $171 billion in trades involved tether (USDT), while bitcoin accounted for $132 billion. However, not all coins fared well—MELANIA, a meme token launched by the First Lady of the 47th President, emerged as the day’s most significant loser, shedding 52.11%. Similarly, the meme coin POPCAT dropped 12.95% throughout the day.
In crypto derivatives markets, data from coinglass.com indicates $826.58 million in trades were liquidated in the last 24 hours. Of this total, $553.2 million consisted of long positions. During the same period, 278,464 traders saw their positions liquidated across the derivatives sector. Bitcoin and ethereum led these liquidations, with BTC longs accounting for $214 million. Additionally, $34.81 million in TRUMP long positions were wiped out, contributing to the day’s broader derivatives losses.
Despite the buzz surrounding Trump’s return to public office, the crypto market’s reaction proved unexpectedly muted. Trump’s decision to avoid addressing digital assets in his inaugural speech deflated hopes for a rally, illustrating an apparent disconnect and previous connection between political milestones and the underlying market mechanics of bitcoin (BTC) and the crypto economy. While the market posted slight gains, the absence of direct political influence on crypto valuations reinforces the notion that other forces steered investor sentiment differently today.
Trump, however, did announce plans to issue executive orders aimed at halting the hiring of new Internal Revenue Service (IRS) agents, as well as requiring all federal employees to return to in-person work immediately. Meanwhile, the family-run decentralized finance (defi) initiative, World Liberty Financial, made significant acquisitions, securing $47 million in ETH, $47 million in WBTC, and $4.7 million each in AAVE, LINK, TRX, and ENA.
Source: Bitcoin
