Bitcoin Volatility Following Trump’s Inauguration

On January 20, 2025, Donald Trump was sworn in as the 47th President of the United States. This event coincided with a significant moment in the cryptocurrency market. Bitcoin, the leading digital currency, surged to an all-time high of over $109,000 (approximately Rs. 94.2 lakh) just hours before the inauguration. However, the excitement was short-lived. Following Trump’s inaugural speech, which notably lacked any mention of digital assets, Bitcoin’s price fell by more than three percent, trading at around $101,755 (roughly Rs. 88 lakh) on global exchanges. In India, Bitcoin was priced at $102,832 (approximately Rs. 88.9 lakh) at the time of reporting. The market’s volatility raises questions about the future of cryptocurrencies, especially if Trump decides to introduce any crypto-related executive orders in the coming days.
Market Reactions: Optimism Meets Reality
The cryptocurrency market experienced a rollercoaster of emotions following Trump’s inauguration. Initially, the surge in Bitcoin’s price reflected a wave of optimism among investors. Many believed that Trump’s second term would usher in pro-crypto policies that could benefit the market. However, this optimism quickly faded when the President failed to address cryptocurrency in his inaugural speech. Avinash Shekhar, Co-Founder and CEO of Pi42, noted that the lack of discussion around digital assets dampened market expectations. He emphasized the importance of caution and due diligence when investing in cryptocurrencies, highlighting the need to balance optimism with risk.
The immediate aftermath of the inauguration saw not only Bitcoin’s decline but also a drop in the prices of other major cryptocurrencies. Ether, for instance, fell by 1.61 percent, trading at $3,238 (roughly Rs. 2.80 lakh) on international exchanges. In India, Ether’s price dipped by two percent, reflecting a broader trend of declining values across the crypto market. Other cryptocurrencies, including Ripple, Tether, and Solana, also faced losses. This widespread downturn indicates that investor sentiment is closely tied to political developments, particularly those involving regulatory frameworks for digital currencies.
Broader Market Trends: Winners and Losers
Despite the overall decline in the cryptocurrency market, some tokens managed to defy the trend. While many cryptocurrencies saw their values drop, a few, such as Tron, Monero, Iota, and Augur, experienced gains. This divergence highlights the unpredictable nature of the crypto market, where certain assets can thrive even amid broader volatility.
The overall market capitalization of cryptocurrencies fell by 1.16 percent in the last 24 hours, now standing at approximately $3.51 trillion (around Rs. 3,03,53,602 crore). Notably, Trump’s official token, “Official Trump,” plummeted by over 34 percent, while the price of the Official Melania Meme token dropped by 60 percent. In contrast, some primitive altcoins like Raydium (RAY), Lido DAO (LDO), and Aave saw significant gains, suggesting that investor interest remains dynamic and varied. The CoinDCX Research Team pointed out that the market trends following Trump’s inauguration reflect uncertainty about future crypto policies, as the President’s silence on the topic left investors in a state of apprehension.
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