US Crypto Stocks Decline Amidst Anticipation for Trump’s Action on Cryptocurrency Regulations

On January 21, US cryptocurrency stocks closed lower as investors and industry leaders awaited concrete actions from President Donald Trump regarding his proposed initiatives for the crypto market. Despite the market’s hopes, the first day of Trump’s presidency passed without any mention of cryptocurrency, leading to widespread uncertainty across the sector.

Crypto Stocks’ Performance

  • Riot Platforms (RIOT) – down 4.85%
  • Mara Holdings (MARA) – down 1.76%
  • Terawulf Inc (WULF) – down 6.88%
  • CleanSpark (CLSK) – down 7.67%

In contrast, major players like Coinbase (COIN) displayed more minor fluctuations, experiencing an opening drop over 8.5% before stabilizing at $294.19. Meanwhile, MicroStrategy (MSTR) also maintained overall resilience, closing down 1.87%.

While the market continued to experience a downturn for crypto stocks, Bitcoin’s price exhibited a remarkable rebound, climbing by 3.45% within the same timeframe. At the time of this report, Bitcoin was trading at approximately $105,770, thriving towards its all-time high of $108,659.

Political Context and Market Sentiment

Upon returning to the White House, President Trump emphasized priorities such as public safety, energy independence, and government reform. However, the absence of cryptocurrency from this list has left experts questioning the potential plan for the industry amidst his proposed agenda. Notably, Trump granted a pardon to Ross Ulbricht, the founder of Silk Road, a development that many crypto advocates see as a possible nod toward future policy adjustments.

Prominent figures in the crypto industry, including Bitcoin bull Anthony Pompliano, remain optimistic. Pompliano stated, “If Ross Ulbricht got the pardon, we are definitely getting the Strategic Bitcoin Reserve,” suggesting a belief in the broader implications of this decision for the crypto ecosystem.

Although US crypto stocks face a challenging moment, some analysts suggest that this could be a pivotal period of change in crypto policy driven by the Trump administration’s initiatives. Reports indicate that the overall stock market, illustrated by a slight uptick of 0.88% in the S&P 500, reflects investor confidence in a pro-business environment, despite concerns for the crypto sector’s trajectory.

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