- Bitcoin reached R2 million for the first time ever for about three hours.
- The token then rapidly fell in price because the crypto-community was disappointed Trump didn’t mention any digital currencies in his inauguration speech.
- It seems the fate of digital tokens are now tied to the actions of the Donald, for better or worse.
The most important cryptocurrency, Bitcoin, hit R2 million for the first time ever for about three hours before dropping rapidly. The record-setting price was reached a few hours before Donald Trump’s second presidential inauguration in the US and takes place over a month since the token broke through the R1.8 million barrier.
While the price has fallen significantly since hitting a new record high of R2.03 million at around 10:30 on Monday morning, it is once again on the incline as of Tuesday afternoon. But what led to the record setting moment and why couldn’t it last?
The price of Bitcoin cooled rapidly, alongside the price of President Trump and his wife Malenia’s memecoins (they have one each) and the prices of other digital tokens following the US President’s inauguration speech which, surprisingly, made no mention of crypto.
Trump did sign a number of executive orders after his speech, including those cancelling 78 Biden-era orders including the 2023 US AI Framework which sought to guide companies on how to ethically and responsibly developed AI-powered solutions without risking job security and other rights.
However his promises to the cryptocurrency community, especially made during the 2024 Bitcoin convention, did not rear their heads. It may be that Trump and his team are keeping those locked in for later or maybe because he plans to issue these changes sporadically over his four year term.
These included the creation of a national cryptocurrency stockpile and begin a government-wide effort to mine crypto.
Either way, no crypto mentions in a speech led to the Bitcoin price dropping by several hundred thousand Rands in a never more clear symbol of its enormous volatility and that of other cryptocurrencies.
“The digital asset market is disappointed to not have been mentioned in the inauguration speech or day 1 executive orders,” Geoffrey Kendrick, global head of digital assets research at Standard Chartered, told Reuters.
“I suspect bitcoin will end up going lower so long as we get no news from Trump on digital assets. A break back below $100,000 seems inevitable.”
The difference in these comments compared to those about digital currencies during Trump’s election win are stark.
“The prospect of a crypto-friendly Trump administration has injected optimism into the market, with promises to transform the U.S. into a global crypto hub made on the campaign trail,” said Binance CEO, Richard Teng, in December.
It seems as the day one promises weren’t kept for crypto by Trump, the industry is now expecting a significant cooling down of the madness that gripped the industry at the end of last year. More volitility is expected especially as it seems digital tokens are not linked to the actions of Trump and his upcoming presidency.
