Singapore/Paris, Jan 21 (Reuters) - Bitcoin, along with other cryptocurrencies, and even a newly launched token named after Donald Trump, took a hit on Tuesday following the U.S. president's initial policy actions post-inauguration, which did not mention the digital asset class.
Bitcoin, the leading cryptocurrency globally, surged to a record high of $109,071 on Monday, coinciding with Trump's inauguration as the 47th U.S. president. However, its value then started to decline. As of 1001 GMT on Tuesday, it was trading at $102,546.13, still showing a gain of approximately 9.5% for the month.
Trump's own cryptocurrency, which was introduced on Friday, was trading at $37.98, as noted by cryptocurrency price tracker CoinMarketCap. It had nearly halved from its peak of around $75 on Monday, when its market capitalization surpassed $14 billion. The token was initially priced around $6.50.
While Trump's inauguration speech and day one executive orders covered various topics such as trade tariffs, immigration, and energy deregulation, there was no mention of cryptocurrencies.
Geoffrey Kendrick, global head of digital assets research at Standard Chartered, expressed disappointment, stating, The digital asset market is disappointed to not have been mentioned in the inauguration speech or day 1 executive orders. He also predicted a potential drop in bitcoin's value without any updates from Trump, suggesting a possible dip below $100,000.
Expectations were high among crypto investors that the crypto-friendly president would initiate a change in U.S. policies towards this volatile asset class. The speculation led bitcoin to surpass $100,000 for the first time.
Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, noted a possibility of a "sell-the-news event" in the short term. He added that investors were anticipating executive actions from Trump during his initial days in office.
Although there was a brief setback in the crypto market, Trump's recent appointments within the Securities and Exchange Commission (SEC) have provided some encouragement to the industry. The market anticipates further developments and potential volatility in the near future.