Bitcoin Tumbles 3% After Trump Inauguration Speech Lacks Nod to Digital Assets

Bitcoin (BTC) traded at just above $101,000 Sunday night — down 3%. Bitcoin enthusiasts were optimistic as Trump began his second term as president

Bitcoin price fell Sunday as the cryptocurrency’s latest downturn continues.

The world’s largest cryptocurrency by market capitalization was trading at $101,040 as of 20:00 ET (01:00 GMT Monday).

Bitcoin dropped 3.03% over the past 24 hours. It had fallen as low as $98,688 earlier in the day.

The coin is still up 30.05% year-to-date.

Bitcoin has seen wild price swings in recent months, largely driven by optimism over institutional interest in the asset class.

However, the latest downturn comes as a surprise to some, given the anticipation of pro-cryptocurrency policies following President Donald Trump’s inauguration.

Bitcoin enthusiasts were expecting at least a mention of digital assets in Trump’s speech, but the address made no reference to cryptocurrencies.

This lack of attention from the president may have prompted some investors to reconsider their bullish bets.

As a result, we saw a wave of sell-offs, ultimately contributing to Bitcoin’s price decline.

To add insult to injury, a pair of meme coins, launched with great fanfare and enthusiasm, fizzled out spectacularly.

The coins, named “Official Trump” (TRUMP) and “Melania,” were met with a burst of energy upon entering the market.

However, the Trump token saw its value halved merely days after its debut, while the Melania coin fared even worse, losing a staggering 74% of its worth.

These short-lived ventures, while entertaining, brought instability to an already jittery market.

Meanwhile, strong economic data from the U.S. played a dual role in affecting Bitcoin’s price.

While the robust performance of traditional markets, such as the S&P 500, offered reassurance to some investors, it also led to a shift in capital away from riskier assets, including cryptocurrencies.

The interplay of these macroeconomic forces further influenced Bitcoin’s struggles.

Despite the turbulence, Bitcoin still trades above the $100,000 threshold, a level that would have seemed improbable to many just a few years ago.

In the long term, optimism remains, with some, like BlackRock CEO Larry Fink, predicting a massive surge in institutional investment.

Fink has stated that he believes Bitcoin could reach $700,000 as more institutions offer exchange-traded funds (ETFs) for the cryptocurrency.