Crypto Takes Center Stage: A New Era Begins with Trump’s Presidency

This week has been momentous in the cryptocurrency arena! Although the prices may not indicate this on a week-long scale, numerous developments have transpired on a macro scale that could facilitate the much-anticipated long-term advancement. Currently, the total cryptocurrency market capitalization is approximately $3.8 trillion, but let’s proceed methodically.

The initial event that unfolded at the week’s outset was Donald Trump taking the presidential oath and assuming the role of the 47th president of the United States. This triggered a sequence of developments that may have a significant and enduring effect on the industry.

Right from the outset, Trump enacted an executive order which, among other objectives, created a working group for Digital Asset Markets aimed at assessing the benefits of establishing a strategic national cryptocurrency reserve. However, some clarifications need to be made. Many anticipated Trump would highlight Bitcoin and potentially instruct the government to contemplate purchasing it for national reserves. In practice, the order only mentions not selling the cryptocurrency that has been seized by the country.

Nonetheless, the order also seeks to prohibit the formation and continued use of central bank digital currencies to avert possible competition to the dollar’s dominance. Furthermore, the document emphasizes the need for enhanced access for individuals and cryptocurrency enterprises to the national banking framework, effectively putting an end to operation Chokepoint 2.0.

Moreover, Trump appointed an interim Chairman to the Securities and Exchange Commission – Mark Uyeda. They also formed a task force led by Commissioner Hester Peirce (also known as Crypto Mom) to focus on developing a fair and transparent regulatory environment for digital assets.

Overall, it was a productive week regarding crypto fundamentals, albeit not so much in terms of prices, as most cryptocurrencies reported losses, except for BTC, which saw an increase of about 2%.

This Week’s Crypto Highlights You Can’t Overlook

Trump Signs Executive Order to Explore National Digital Asset Reserve: Report. The most significant news in the cryptocurrency sector this week emerged on Thursday night when the new US President signed an executive order to examine the establishment of a ‘National Digital Asset Reserve.’ This, alongside Senator Cynthia Lummis’ ascension to chair the Senate Banking Subcommittee on Digital Assets, encouraged Changpeng Zhao to assert that the BTC reserve is ‘essentially confirmed.’

Donald Trump Grants Pardon to Silk Road Founder Ross Ulbricht. President Trump appears to be fulfilling his promises, at least temporarily, by officially pardoning Ross Ulbricht, the contentious creator of the infamous Silk Road. The developer spent nearly a decade incarcerated after being convicted in May 2015 on seven charges, resulting in two life sentences plus 40 years without the chance of parole.

SEC Repeals SAB 121, Opening Doors for Banks to Hold Cryptocurrency. Positive news from the new US administration regarding crypto continued with a significant change in the Securities and Exchange Commission. A new policy, identified as SAB 122, rescinded the contentious SAB 121, which effectively barred banks from holding cryptocurrency assets.

Trump Appoints Uyeda and Pham as Interim Heads of SEC and CFTC. The shakeup within the two major US financial regulatory bodies – CFTC and SEC – initiated with the appointment of Mark Uyeda as interim Chairman of the latter and Caroline Pham to lead the former until permanent leaders are confirmed.

Trump Minimizes Meme Coin Earnings in His Initial Statement Following Launch. The cryptocurrency domain was shaken last week by the launch of two official meme coins by the US President and the First Lady. The consecutive release of tokens over the weekend reverberated through the market, but Trump downplayed the earnings when he publicly addressed the assets.

Here’s What CryptoQuant’s IBCI Indicates for Bitcoin’s Upcoming Movement. Bitcoin experienced a turbulent week, swinging from a brief dip below $100,000 to a new all-time high surpassing $109,000 on inauguration day. Subsequently, the asset has stabilized, remaining a few thousand dollars from that peak. However, some cautionary signals suggest that this bull run might soon draw to a close or at least pause temporarily.

Charts

This week, we are analyzing charts for Ethereum, Ripple, Cardano, Binance Coin, and Solana – click here for the full price evaluation.