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A cartoon image of US President-elect Donald Trump with cryptocurrency tokens, depicted in front of the White House to celebrate his inauguration, is displayed at a Coinhero store in Hong Kong, China, Monday, Jan. 20, 2025.
Paul Yeung | Bloomberg | Getty Images
Bitcoin and other cryptocurrencies retreated from Monday’s highs as investor sentiment around cryptocurrencies cooled after the president. Donald Trumpthe inauguration of
“Official Trump,” a token representing the new US leader last week, fell as much as 26% in 24 hours, according to data from CoinGecko. Meanwhile, a token meme released on sunday First Lady Melania Trump roughly halved the price in one day.
Bitcoin was trading at about $103,527.93, according to Coin Metrics. That was off 24-hour lows, but down from a high of $109,350.72 before Trump was sworn in. The broader crypto market, measured CoinDesk 20 indexit was below the flat line.
Crypto investors have hailed Trump’s arrival at the White House as a positive moment for the industry. The president has promised to introduce policies that support cryptocurrency, including a proper regulatory framework and a federal bitcoin wall.
While Trump is seen to benefit from crypto, there were no specific policy announcements about the sector during his inauguration on Monday. That was the main factor that took the wind out of the crypto market’s sails on Tuesday.
Kenneth Lamont, director of Morningstar, warned investors not to jump into crypto trading without being properly informed about the risks involved.
“If Donald Trump follows through on his election promises, we could see the cryptocurrency market continue to rise. However, investors would do well to resist the siren call of fear of missing out and sit on their hands,” Lamont said in comments sent on Tuesday.
Cryptocurrencies are notoriously volatile. Bitcoin, the world’s largest digital currency, has previously risen or fallen by thousands of dollars in a single day. Alternative coins or “altcoins”, such as ether and XRP, have been more prone to fluctuations.
“Fear to ask is not an investment strategy. For many investors, the allure of easy wealth is strong,” Lamont said, adding that retail investors “are poor at market times, buying and selling at the worst times.”
