Bitcoin's Roller-Coaster Ride Underscores Market Uncertainty Over Trump's Crypto Stance

Amid hopes that his administration's pro-crypto stance would accelerate adoption and ease regulation, the sudden market volatility underscores investors' uncertainty over how swiftly the new administration might enact crypto-focused executive orders.

Investors’ hopes that the Trump administration would swiftly adopt a pro-crypto stance and ease regulation were dashed on Inauguration Day as markets showed little response to the president’s speech. Despite Trump’s campaign pledge to make America the “crypto capital of the planet,” no specific policies for digital assets were mentioned in his inaugural address.

However, his appointed AI and crypto czar David Sacks declared that “the reign of terror against crypto is over, and the beginning of innovation in America for crypto has just begun.” Markets responded with Bitcoin’s momentum initially soaring, then pulling back as traders locked in profits and took a cautious wait-and-see approach.

Bitcoin’s rapid climb and subsequent dip highlight several catalysts influencing investor behavior. In the early hours of Inauguration Day, major exchanges reported a flurry of buying activity as many traders anticipated an forthcoming executive order establishing a strategic Bitcoin reserve. While no such measure has yet been announced, speculators drove the price up past $109,000. Once Trump finished his speech without revealing immediate policy details, sentiment cooled.

On-chain data suggests that higher Open Interest and reduced spot supply on major platforms like Binance contributed to the rally. This was supported by One research note from Quant, which indicated that when exchange netflow metrics turn negative, it often signals renewed buying interest. In this case, the price gained upward momentum until uncertainty over regulatory actions prompted profit-taking. Some analysts caution that should Trump’s executive orders prove less significant or slower to materialize, the resulting disappointment could further weigh on Bitcoin’s price. Others like Bitwise are more positive, predicting $200,000 for the Bitcoin price in 2025.

“Investors might be disappointed over the short term,” observed the chief technology officer for Radix, Dan Hughes. “If those executive orders do not come as soon as hoped or carry enough significance, the market will react poorly.”

For now, Bitcoin’s performance hinges on the specifics of any upcoming regulatory framework from the Trump White House. Should the administration fulfill its pledge to foster innovation in the crypto sector, renewed optimism could drive the world’s largest cryptocurrency to fresh highs — and solidify America’s position as a global hub for digital assets.