Tommy Reggiorori Wilkes and Hannah Lang
London/New York (Reuters) – The prices of cryptocurrencies in the last few weeks have been reduced and not expected to recover soon, and some of the biggest digital currencies have erased almost all the profits they have achieved after Donald Trump’s election victories have launched a wave of excitement throughout the industry.
Some analysts said the market is likely to remain muffled while waiting for a bull’s signal, such as an indication that US federal reserves are planning to reduce interest rates or a clear regulatory framework of the Pro-Crypt of Trump administration.
Bitcoin (BTC-USD), the largest currency crypt, dropped 21% from the top of January 20th and returned to the level of seen shortly after Trump’s victory in the November presidential elections, as they hope that the strategic reserve for Bitcoin will fade tariff threats as difficult on a request for speculative property.
Other crypto currencies fell faster, with ether (Eth-up) drop more than 40% of December.
Trump’s so -called meme coin, which started the days before his inauguration in the move that caused the concern of conflict of interest, was reduced by 80% from the top of January, according to Coinmarketcap.
The US president promised a wave of pro-Christ moves during his campaign, promising to be a “crypto president.” He promised to establish national supplies of Bitcoin as he processed the crypto regulations and appointed the advocates of Kriptovaluta Howard Lutnick, David Sacks on prominent posts within his administration.
Under Trump, the Securities and Exchange Commission withdrew investigations into several crypto companies and launched a lawsuit against Coinbase, the biggest crypto exchange in the United States, but these moves had little influence on the prices of cryptocurrencies, and some analysts in the industry say that the expectations about Trump may have been too high.
In an executive order during his first week on duty, Trump ordered the creation of a working group for the cryptocurrencies in charge of proposing new digital assets and observing the creation of a national cryptocurrency supply, to the dismay of some investors who were hoping to start buying Bitcoin.
“The market is a disappointed team,” said James Butterfill, head of research at the Asset Manager Coinshares.
Crypto prices also face the winds from several hawks of monetary policy and Trump’s tariff threats, he added.
“This increases all this market insecurity, which absolutely does not help at all Bitcoin. Until we get (clarity at the Bitcoin Reserve), I cannot see that prices are recovered significantly,” Butterfill said.
