Bitcoin Retreats After Traders Book Profits Post-Trump’s Executive Order on Crypto

2 min read | January 27, 2025 11:00 AM AEDT | By Team Kalkine Media

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Bitcoin Retreats After Traders Book Profits Post-Trump’s Executive Order on Crypto — Image source: shutterstock

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Highlights

Bitcoin (BTC) experiences a 3.7% drop as traders secure profits following Trump’s crypto order.

Smaller tokens, including Solana (SOL) and Cardano (ADA), see more than 5% declines.

Trump’s executive order establishes a working group on crypto policy but omits the creation of a Bitcoin reserve.

Bitcoin (BTC) faced a notable retreat on January 27, slipping by 3.7% and falling below $101,000. The dip followed a wave of profit-taking by traders just days after US President Donald Trump recognized the digital-assets sector as a key driver of US innovation in an executive order. Smaller tokens, including Solana (SOL) and Cardano (ADA), which had gained momentum since Trump’s election victory, experienced even steeper declines, shedding more than 5% in value.

The price decline came in the wake of Trump’s executive order issued on January 24, which called for the formation of a working group to advise the White House on crypto policy. This group is tasked with developing a regulatory framework for digital assets in the United States over the next six months. Additionally, the group will explore the possibility of creating a crypto stockpile. However, the executive order stopped short of fulfilling Trump’s earlier campaign pledge to establish a Bitcoin reserve, a key expectation that led to some market disappointment.

Despite the short-term price dip, the broader digital-assets market responded relatively calmly to the order, with modest gains observed in the aftermath. Bitcoin has surged more than 50% since Trump’s election victory in early November, reflecting growing institutional interest in the sector. Trump’s shift from crypto skepticism to support during his campaign played a pivotal role in this growing optimism, with the industry also increasing its political involvement through significant donations. In December, Trump appointed venture capitalist David Sacks as the AI and crypto czar, underscoring the administration's commitment to advancing the sector.

The market’s reaction to the executive order highlights the ongoing volatility of the crypto space, where market participants often react swiftly to regulatory news. Despite the profit-taking observed in the short term, the crypto industry continues to navigate a rapidly evolving regulatory landscape, with Trump’s administration signaling a more supportive stance toward digital assets.

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