Crypto Markets Steady After Trump Orders New Working Group to Explore US Cryptocurrency Stockpile

Bitcoin has been broadly steady since Trump took office on Monday and traded around $105,000 on Friday as some of the euphoria around a hoped-for revolution

Crypto markets steadied on Friday, still holding below recent highs even after President Donald Trump ordered the creation of a new working group, tasked with proposing new crypto rules and exploring the possibility of a U.S. cryptocurrency stockpile.

Bitcoin had been one of the most spectacular "Trump trades" in financial markets, gaining 50% to break above $100,000 and hit highs since Trump's election victory in November, as he promised a bitcoin stockpile and a pro-crypto stance.

An executive order on Thursday, creating a digital assets working group seemed to alleviate some disappointment that crypto reform didn't feature in a flurry of policy announcements on his first day in office, though it was light on detail.

At 1418 GMT, bitcoin was up 1.9% on the day at $105,128 and smaller cryptocurrency ether was up 4.4% at $3,389.

"What we're seeing is a little bit of profit taking in line with the uncertainty we're seeing from Trump now," said Nick Twidale, chief market analyst at ATFX Global in Sydney.

"He's not reneging on some of his promises, but they're probably not going to come through as hard and fast."

Bitcoin has been broadly steady since Trump took office on Monday and traded around $105,000 on Friday as some of the euphoria around a hoped-for revolution in cryptocurrency regulation ebbed.

Plasma Finance founder harvested $17.5 million from an exploit in the decentralized finance protocol on Thursday, a day after the protocol was attacked for $77 million, according to blockchain security firm PeckShield.

Plasma Finance, a decentralized lending protocol on the Polygon blockchain, was exploited again on Thursday, with the attacker making off with $17.5 million, according to blockchain security firm PeckShield.

The new exploit comes a day after an attacker harvested $77 million from Plasma Finance, which had to pause deposits and withdrawals on Wednesday evening after detecting suspicious activity.

The attacker on Thursday drained Plasma Finance's USDC lending pool, according to PeckShield, which is tracking thePlasma Finance attacker's address and reporting on their movements.

Crypto executives toasted the incoming administration at a sold-out black-tie ball a week ago. Among the guests were executives from FTX, Ripple and eToro, according to Axios. Some crypto influencers also attended the event.

Cryptocurrency prices had surged in the lead-up to Trump's inauguration, with bitcoin gaining around 50% since early November. Some analysts had expected Trump to use an executive order to announce new pro-cryptocurrency policies, such as ordering the creation of a bitcoin reserve, banning tariffs on crypto or directing the SEC to issue favorable guidance.

However, Trump's executive order on Thursday was largely focused on strengthening the U.S. dollar and included only a few sentences on digital assets, instructing banking services for crypto companies be protected and banning the development of a U.S. central bank digital currency.

The order also directed a high-level working group to deliver a report within seven months, recommending regulatory changes and evaluating the potential to create a national digital asset stockpile, among other tasks.

Two Democratic lawmakers asked U.S. regulators on Thursday to answer questions about the $TRUMP and $MELANIA cryptocurrencies launched by the president and his wife.

Among accusations made in the letter, they said that the tokens "allow them to earn extraordinary profits off his Presidency."

Plasma Finance founder harvested $17.5 million from an exploit in the decentralized finance protocol on Thursday, a day after the protocol was attacked for $77 million, according to blockchain security firm PeckShield.

Plasma Finance, a decentralized lending protocol on the Polygon blockchain, was exploited again on Thursday, with the attacker making off with $17.5 million, according to blockchain security firm PeckShield.

The new exploit comes a day after an attacker harvested $77 million from Plasma Finance, which had to pause deposits and withdrawals on Wednesday evening after detecting suspicious activity.

The attacker on Thursday drained Plasma Finance's USDC lending pool, according to PeckShield, which is tracking thePlasma Finance attacker's address and reporting on their movements.