Cryptocurrency prices have been down sharply in recent weeks and are not expected to rebound soon, with some of the biggest digital currencies erasing nearly all of the gains they made after Donald Trump’s election win triggered a wave of excitement across the industry.
Some analysts said the market is likely to remain subdued while waiting for a bullish signal, such as indications that the US Federal Reserve plans to cut interest rates or a clear pro-crypto regulatory framework from the Trump administration.
Bitcoin, the biggest cryptocurrency, has fallen 21 per cent from a January 20 peak and is back to levels seen shortly after Trump’s US presidential election victory in November, as hopes for a strategic Bitcoin reserve fade and tariff threats weigh on demand for speculative assets.
Other cryptocurrencies have fallen faster, with ether down more than 40 per cent since December.
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Trump’s own so-called meme coin, which he launched days before his inauguration in a move that sparked conflict-of-interest concerns, is down 80 per cent from a January peak, according to CoinMarketCap data.
The US president promised a wave of pro-crypto moves during his campaign, vowing to be a “crypto president.”
He pledged to set up a national Bitcoin stockpile while overhauling crypto regulations and named crypto proponents Howard Lutnick and David Sacks to prominent posts within his administration.
Under Trump, the Securities and Exchange Commission has withdrawn investigations into several crypto companies and dropped a lawsuit against Coinbase, the largest crypto exchange in the US.
But those moves have had little impact on crypto prices, and some industry analysts say expectations about Trump may have been too lofty.
In an executive order during his first week in office, Trump ordered the creation of a cryptocurrency working group tasked with proposing new digital asset regulations and looking into creating a national crypto stockpile, to the dismay of some investors who had hoped he would instruct the US to start buying Bitcoin.
