US President Donald Trump has returned to the White House, sending shockwaves through the cryptocurrency market. Bitcoin prices surged above $106,000 as investors welcomed the news, citing promises of supportive policies and regulations.
The CoinDesk 20 index rose 1.6% and “Official Trump” token cut its losses by over 2%, following a 20% drop earlier this week. Acting SEC Chair Mark Uyeda has launched a crypto task force to develop a comprehensive regulatory framework for cryptocurrency assets.
Investors hail the president’s return as positive news, while warning against speculative trading. Morningstar principal Kenneth Lamont cautioned that fear of missing out is not an investment strategy and advised investors to sit on their hands until informed about the risks involved.
Bitcoin has historically been volatile, with prices fluctuating by thousands in a single day. Retail investors often struggle with market timing, making it essential to approach cryptocurrency trading with caution.
Source: https://www.cnbc.com/2025/01/21/bitcoin-slips-trump-token-plunges-over-20percent-as-crypto-market-cools.html