Trump's decisions cause volatility in crypto markets: What is the latest status of Bitcoin and Ethereum?

In his first week in office, the new US President Donald Trump signed a series of decisions that closely concern the crypto markets. Seeking to establish a 'supervisory mechanism' over cryptocurrencies, Trump also launched a cryptocurrency bearing his name, 'Trumpcoin,' last Friday. Trump's statements and the executive orders he has signed since the beginning of the week have led to movement in the 'crypto markets.'

In a statement made at the Oval Office on Thursday, US President Donald Trump announced that a cryptocurrency working group would be established by the US government. This group will consist of key figures such as the Secretary of the Treasury, the Attorney General, and the Chair of the United States Securities and Exchange Commission (SEC). 

The new executive orders also prohibit the launch of digital currencies (CBDC) belonging to the US Federal Reserve (FED). Trump had also promised to prevent the development of a CBDC during his election campaign.

On the other hand, the previous President Joe Biden’s order regarding crypto regulations has been revoked.

CRITICISM FROM BITCOIN ADVOCATES

The executive order signed by Trump has sparked debate among Bitcoin advocates. The fact that the order only includes the term 'digital assets' was received negatively by Bitcoin supporters. 

Crypto experts are concerned that the definition used in the executive order is being expanded to cover other digital assets beyond Bitcoin. 

It is known that Trump promised to create a strategic Bitcoin reserve for the US during his election campaign. 

SEC DECISION ON CRYPTO ASSETS

Following the executive orders issued by Trump, the SEC made a significant decision affecting the crypto sector. The SAB 121 rule, published in 2022, which required crypto assets to be shown as liabilities on balance sheets, has been revoked. 

This rule, which was frequently criticized by the crypto sector, was reported to have made the sector's administrative processes difficult. 

This move by the SEC was evaluated as an important step toward providing a more flexible working environment for cryptocurrency companies.

WHAT IS THE SITUATION IN CRYPTO MARKETS?

The cryptocurrency market fluctuated following Trump's statements. As of January 24, Bitcoin was trading at 104,923 dollars, while Ethereum fell to 3,390 dollars. 

The total value of the cryptocurrency market is at the level of 3.55 trillion dollars. Bitcoin's market value was recorded at 2.07 trillion dollars, and Ethereum's market value at 408 billion dollars. 

On Thursday, there was an inflow of 188.7 million dollars into Bitcoin ETFs, while there was an outflow of 14.9 million dollars from Ethereum ETFs. 

News Source: 12punto