Trump’s Day One: Mark Ueda at SEC, Ulbricht Freed and MELANIA Collapses

On January 20, Donald Trump was officially sworn in as U.S. President, ushering in a new chapter not only in American politics but also in the crypto industry. Despite his earlier bold promises, Trump made no mention of cryptocurrency in his inaugural speech. However, market participants continue making forecasts for his administration’s term.

Crypto Market’s Reaction to the Inauguration

Before the inauguration, Bitcoin hit an all-time high of $109.11. But following that peak, a correction began. At the time of writing, the asset trades at $102.19. Analysts at Santiment link the rapid rise and subsequent dip to heightened expectations and social media hype, noting that, on short time frames, the market often moves opposite to crowd sentiment.

Trump launched his memecoin TRUMP before the inauguration, and his wife Melania announced the MELANIA token. Both attracted significant attention, yet on inauguration day their prices fell sharply: TRUMP dropped by 32.39% in the last 24 hours, while MELANIA shed 59.75%. Trading volumes also plunged over 50%. In addition, social media was flooded with posts from traders reporting multi-million-dollar losses.

Entrepreneur Mark Cuban sharply criticized Trump’s memecoin as a “speculative project with no real value.” In his view, such tokens undermine trust in the crypto industry and create obstacles to mainstream acceptance. Cuban also noted potential conflicts of interest when a president issues a personal token, complicating crypto market regulation. Later, the billionaire mentioned he might launch his own memecoin “under the same conditions as Trump” — with 20% in free circulation. The only difference, he suggested, was to direct all proceeds from the sale to the U.S. Treasury:

“If you want to gamble, gamble. But at least let it serve a purpose to reduce the national debt,” he said.

Maxine Waters, a member of the House Financial Services Committee, expressed concern that TRUMP might be used to circumvent national security laws and could attract anonymous foreign investments, including from sanctioned countries. She also criticized the lack of transparency about the token’s owners.

Early Actions After the Inauguration and the Crypto Community’s Response

During his initial days in office, Trump has already taken steps the crypto community sees as positive. Among the first orders was the appointment of Mark Ueda, known for his pro-crypto stance, as acting head of the SEC. This follows the resignation of Gary Gensler, who pledged to step down after Trump’s inauguration. Gensler’s resignation statement is now published on the SEC website.

Some analysts and prominent figures link Trump’s inauguration to a likely start of a new bull cycle. Stock-to-Flow (S2F) model creator PlanB anticipates Bitcoin entering a new growth phase, and crypto blogger Jake Gagain calls 2025 a bullish year for crypto investors.

Expected presidential orders include measures allowing banks to trade cryptocurrencies, incorporate them into client portfolios, and offer related investment products. This was claimed at the Davos forum by Circle CEO Jeremy Allaire.

Bitcoin Magazine CEO David Bailey stated that among the first 200 executive orders, several are tied to cryptocurrency, though details remain undisclosed.

With Trump’s inauguration, Binance founder Changpeng Zhao voiced optimism, calling it the start of a “new era.” Official Binance accounts posted messages supporting the president and his initiatives, which the exchange believes could boost the market.

Meanwhile, Elon Musk made a major announcement that Ross Ulbricht, the creator of Silk Road, will be released from prison. Ulbricht is serving a life sentence for running a platform where banned goods were traded for bitcoins. If carried out, it would be one of the most controversial moves in crypto history.

Risks and Uncertainties

Despite positive forecasts, the crypto community is wary of Trump’s interest in memecoins potentially diverting attention from more strategic initiatives, such as creating a U.S. Bitcoin reserve. On Polymarket, the chance of implementing this initiative in 2025 is 63%. Experts warn that volatility and speculative projects could undermine regulatory efforts in the crypto market.

This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.