On January 21, US cryptocurrency stocks experienced a downturn as President Donald Trump marked his first day in office. Despite significant anticipation from the crypto industry for potential regulatory actions, there was no mention of cryptocurrency in his inaugural priorities. Major crypto mining companies saw declines, with Riot Platforms slipping 4.85% and Marathon Holdings falling 1.76%. Other companies like Terawulf Inc and CleanSpark faced even steeper losses, dropping 6.88% and 7.67% respectively.
Cryptocurrency trading platform Coinbase initially saw a drop of over 8.5% in early trading, settling at $294.19, a modest decline compared to its earlier trading of $274.80. MicroStrategy, known for its significant Bitcoin holdings, managed to close down just 1.87% at $389.10, having rebounded from an earlier 7% decline. In contrast, Bitcoin itself continued its rally, increasing by 3.45% within 24 hours to a trading price of $105,770, moving closer to its recent high of $108,659.
Upon returning to the White House, Trump emphasized various priorities including public safety, energy independence, and government reform, notably omitting his prior pro-crypto campaign commitments. However, he did fulfill his promise to pardon Ross Ulbricht, founder of Silk Road, which has generated renewed optimism among crypto advocates about potential future advancements in the crypto sector.
As cryptocurrency markets faced declines, the broader stock market showed slight growth, with the S&P 500 increasing by 0.88%. This uptick followed a market closure on Trump’s inauguration day due to Martin Luther King Jr. Day. The overall sentiment pointed towards optimism in business as the markets reacted positively to the new presidential administration. The US dollar index did experience a decrease, falling 1.27% from a recent two-year high, now trading slightly above 108.
