Summary
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Mixed Impact & Market Uncertainty: Despite pre-election optimism and some pro-crypto appointments/actions (like pardoning Ross Ulbricht), Trump’s first 100 days were marked by market volatility, controversial token launches ($TRUMP), and unmet initial expectations, causing Bitcoin’s rally to falter.
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Policy Volatility & Reserve Plans: The administration generated confusion with a sudden proposal for a mixed crypto reserve including altcoins like XRP and Solana, which faced criticism before being revised via executive order to create separate strategic reserves for Bitcoin and other digital assets.
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Personnel and Business Developments: Key appointments included perceived crypto-friendly figures like Treasury Secretary Scott Bessent and advisor David Sacks, while Trump-related businesses increased their exposure to digital assets through reserves and ETFs.
Initial Optimism Meets Market Turbulence
Despite initial optimism within the cryptocurrency community regarding Donald Trump’s return to the presidency, the first 100 days have introduced considerable market turbulence and dashed some expectations, contributing to a stalled Bitcoin rally.
While some actions perceived as crypto-friendly have occurred, criticisms persist that the administration’s policies lack sufficient depth.
Controversial Token Launches and Market Volatility
The period commenced amidst significant market disruption and unpredictability.
Before the second term, enthusiasm was high, but disappointment in other areas tempered subsequent pro-Bitcoin declarations.
The pre-inauguration launch of an official $TRUMP token, for example, generated both market excitement and considerable controversy, with detractors citing potential conflicts of interest and even national security risks.
This token, along with a related $MELANIA token, has since experienced substantial value depreciation, falling dramatically from initial peaks.
Unfulfilled Promises and Early Actions
Anticipation ran high for immediate, sweeping pro-crypto executive orders upon Trump’s return to the Oval Office, particularly the rumored creation of a strategic Bitcoin reserve.
These actions, however, did not materialize on day one.
Although Bitcoin reached an unprecedented high of $109,000 on January 20th, it has subsequently failed to reclaim that level.
Early on, the campaign fulfilled certain promises made at events like Bitcoin 2024.
Notably, Ross Ulbricht, creator of the Silk Road marketplace, received a full pardon after 11 years of imprisonment.
Reports indicated lobbying efforts for clemency by Sam Bankman-Fried, though these proved unsuccessful.
Key Appointments and Administration Moves
Furthermore, several cabinet nominees viewed favorably by the crypto industry received Senate confirmation. Incoming Treasury Secretary Scott Bessent publicly endorsed cryptocurrency’s permanence and association with freedom.
Conversely, Commerce Secretary nominee Howard Lutnick faced intense scrutiny during confirmation regarding his company’s connections to the Tether stablecoin, though he reportedly dismissed these concerns pointedly.
A significant appointment was that of David Sacks as the administration’s inaugural AI and crypto advisor (czar), a move largely welcomed, even by Trump critics like Anthony Scaramucci, particularly as Sacks divested his holdings in major cryptocurrencies before assuming the role.
Concurrently, Trump’s business entities, such as the Trump Media and Technology Group, have increased their digital asset exposure through reserve accumulation and the introduction of related exchange-traded funds.
Surprise Announcement of Altcoin Reserve
A characteristic element of unpredictability emerged on March 2nd when President Trump abruptly announced via Truth Social an intention to establish a “U.S. crypto reserve” comprising XRP, Solana, and Cardano.
This unexpected declaration triggered sharp price increases for the named altcoins.
Bitcoin and Ether were notably absent from the initial announcement but were later added as central components in a follow-up statement.
This proposal to group Bitcoin with other altcoins in a single reserve drew sharp criticism from market experts, who labeled the concept unviable and poorly conceived.
Concerns regarding feasibility, particularly the potential need for Congressional authorization, were widespread.
Key details regarding funding, asset allocation, and implementation timing remained unspecified.
Policy Reversal: Separate Bitcoin and Crypto Reserves
These questions ultimately became moot.
In a subsequent policy shift, Trump issued an executive order formally establishing a strategic Bitcoin reserve, alongside a distinct, separate stockpile designated for other cryptocurrencies, aligning more closely with earlier expectations while still acknowledging a broader range of digital assets.
Also Read: Impeachment Suggestion at TRUMP Coin Holder Dinner
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