Emily Walker
On his highly scrutinized first day in office, President Donald J. Trump did not issue any executive orders related to cryptocurrency, nor did he mention the Strategic Bitcoin Reserve he had vowed to establish during the Bitcoin 2024 conference in Nashville. Although there was substantial speculation that drove Bitcoin’s price briefly to nearly $110,000 in anticipation of his inauguration, Trump’s speech made no reference to Bitcoin or crypto.
Trump’s Day 1: No Mention of Bitcoin or Crypto
After Trump’s silence on cryptocurrency, Bitcoin’s value dropped sharply from $110,000 to $100,000, causing significant volatility that unsettled short-term traders. However, some experts in the industry believe that the initial negative reaction might not represent the future direction of Trump’s policies.
“To be honest, it was unlikely Trump would mention crypto in his inaugural address. What matters is what unfolds in the coming days. There are already rumors about a pardon for Ross Ulbricht and an executive order enabling banks to hold digital assets more easily. Patience is key,” stated Miles Deutscher on X.
In a similar vein, industry expert Will Clemente III reassured anxious market participants by asserting, “Crypto Twitter is overreacting because nothing was done about crypto on the first day of Trump’s swearing-in. The pro-crypto regulations are on their way.”
In remarks shared by Reuters, Circle’s CEO Jeremy Allaire anticipated that Trump “may soon endorse an executive order” which would facilitate banks in owning digital assets. Allaire specifically suggested repealing the SEC’s Staff Accounting Bulletin (SAB 121) which limits financial institutions’ ability to include cryptocurrencies on their balance sheets. “This is definitely something to keep an eye on regarding upcoming executive orders,” Allaire mentioned to Reuters.
As part of the ongoing speculation, Elon Musk responded to a user on X, hinting that “Ross will be freed too,” stoking rumors that Trump might be preparing to commute the sentence of Bitcoin advocate Ross Ulbricht. Crypto analyst Byzantine General (@ByzGeneral) interpreted Musk’s comment as a significant sign of possible forthcoming actions, stating: “We may be back. Trump might be holding back all crypto-related executive orders for later this week.”
Nevertheless, there is currently disappointment regarding the anticipated Strategic Bitcoin Reserve, a plan the president mentioned during his campaign and at the Bitcoin 2024 conference. With no formal announcement, Bloomberg ETF analyst James Seyffart commented on X: “Not quite the Strategic Reserve everyone had hoped for.”
Seyffart was referring to a post by Donald Trump Jr. that revealed the Trump-affiliated cryptocurrency firm, World Liberty Finance (WLFI), made considerable digital asset acquisitions on Inauguration Day. Specifically, World Liberty Finance purchased $47 million each of Ethereum and wrapped Bitcoin (WBTC), along with $4.7 million in Aave, Chainlink, TRX, and ENA each.
Highlighting a possible strategy for accumulating Bitcoin over the long term, Felix Jauvin, host of the “Forward Guidance” podcast, noted: “If Trump wanted to discreetly acquire Bitcoin for a strategic reserve with optimal execution, the Exchange Stabilization Fund of the Treasury would be the way to go. It doesn’t require Congress’s approval or an executive order and is reported only once a year. This allows for discreet accumulation over a year before a public announcement, assuming the goal is to maximize purchase price. This is all speculation, but it provides some context.”
In the meantime, BTC Inc. CEO David Bailey shared his insights via X today: “I received confirmation tonight that our executive orders are among the first 200. I have no information about their contents, but positive news is coming.” He clarified: “These EOs are related to Bitcoin or crypto.”
While President Trump’s silence on cryptocurrency during the inauguration may have dampened market enthusiasm, leaders in the industry remain optimistic about the expected upcoming policy changes and potential executive actions. The crypto community continues to await details on the White House’s initiatives surrounding a Bitcoin reserve, regulatory easing for banks, and the possible pardon for Silk Road founder Ross Ulbricht.
At the time of publication, Bitcoin was trading at $101,451.