Bitcoin’s Fall After Trump’s Inauguration: A Historical Perspective and a Look Ahead

In the lead-up to President Donald Trump’s inauguration on January 20, 2025, Bitcoin experienced a significant surge, surpassing the $100,000 milestone and reaching an all-time high of $108,244. This upward trajectory was largely attributed to investor optimism regarding the incoming administration’s anticipated crypto-friendly policies.

 

 

According to reports, President Trump intended to issue an executive order establishing cryptocurrencies as a national policy priority, possibly utilizing the $20 billion in confiscated Bitcoin holdings held by the government to establish a national Bitcoin stockpile. 

Additionally, the appointment of Paul Atkins, a known crypto advocate, as the prospective chair of the Securities and Exchange Commission (SEC) further bolstered investor confidence. Republican officials at the SEC were expected to start revising the agency’s cryptocurrency policies shortly after Trump assumed office.

However, the price of Bitcoin fell after the inauguration. President Trump’s declaration that 25% tariffs would be applied to Canada and Mexico beginning February 1st, citing border security and fentanyl trafficking concerns, had an impact on this decline. Investor sentiment suffered as a result of the revelation, which also caused market uncertainty and a drop in the value of the Canadian dollar and Mexican peso. 

Moreover, the launch of cryptocurrencies $TRUMP and $MELANIA, which initially saw high capitalizations, experienced declines after their initial highs. This volatility highlighted the unpredictable nature of the cryptocurrency market, even with political endorsements.

In summary, while the anticipation of a crypto-friendly administration under President Trump initially drove Bitcoin to new heights, subsequent policy announcements and market reactions introduced volatility, underscoring the complex interplay between political decisions and cryptocurrency markets.

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ABOUT THE AUTHOR See More
Sophia Cruz
Financial Writer - Asian & European Desks
Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.
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