Cryptocurrency Market Faces Volatility After Trump Inauguration, Top Assets Gain but Overall Market Declines

The cryptocurrency market experienced volatility on Tuesday following President Donald Trump's inauguration on Monday, as major assets posted gains while the overall market recorded losses.

Bitcoin (BTC) rose 2.5% in the past 24 hours to $106,000, slightly retreating from its all-time high of $108,500 recorded on Monday.

Ethereum (ETH) gained 1%, reaching $3,337. XRP spiked 1.1% to $3.21, just shy of its all-time high of $3.40 set a few days ago. Solana (SOL) surged 2.4%, reaching $248.

Meanwhile, the total cryptocurrency market cap declined 2% to $3.79 trillion, according to CoinGecko.

In the past 24 hours, 152,973 traders were liquidated, with total liquidations coming in at $333 million, according to CoinGlass. BTC accounted for around $116 million in liquidations, while altcoins recorded $36 million. ETH traders suffered around $35 million in liquidations.

The market's mixed response to Trump's swearing-in highlights the sensitivity of digital assets to political events, as well as the ongoing uncertainty surrounding how the president’s policies will impact the crypto landscape.

Trump’s Crypto Stance

On Jan. 20, Trump was inaugurated for a second, non-consecutive term as the 47th President of the U.S., following months of expressing pro-crypto sentiment and appointing pro-crypto figures to key positions. Most recently, Trump named Mark Uyeda as acting chair of the SEC.

Richard Teng, CEO of cryptocurrency exchange Binance, said on Tuesday in an interview with CNBC that he expects “much clearer regulation” in the US under the new Trump administration, a move he believes will be supportive of crypto markets.

“If you look at past cycles, this year will be a year that we see a new all-time high for the crypto industry,” Teng said.

Just one month after Trump won the 2024 presidential election on Nov. 5, 2024, Bitcoin surpassed the $100,000 milestone for the first time, soaring more than 45% during that period.