"One Month Since Trump's Inauguration, Bitcoin Declines... Volatility Noted Following News"

It has been a month since Donald Trump, who calls himself the so-called 'Crypto President,' took office as the President of the United States, but cryptocurrency policies are still in the preparation stage, and no concrete details have been released. As a result, the market, including Bitcoin, is gradually slowing down. However, since deregulation policies are expected under the Trump administration, it is pointed out that one should be aware that cryptocurrency volatility could expand at any time depending on news flow.

Kim Hyun-jung, a researcher at the Investment Strategy Team of Kiwoom Securities Research Center, stated in the report titled "One Month Since Trump's Inauguration, Changes in the Cryptocurrency Market," released on the 20th, "Since it is still the early stage of the (Trump) administration, no policies directly affecting the market, such as cryptocurrency-related legislation in the U.S. or the adoption of Bitcoin as a national asset, have been promoted." According to CNBC, the price of Bitcoin, which exceeded $109,000 per coin on the inauguration day of President Trump on the 20th of last month (local time), is currently around $96,000. This means it has dropped about 12% over the month.

Researcher Kim noted, "However, it is noteworthy that an executive order to establish a 'Digital Asset Working Group,' which reviews the establishment of digital asset regulations and the possibility of stockpiling Bitcoin as a national strategic asset, was promoted as the first step in policy implementation." She also pointed out, "Another major change in the cryptocurrency market is that the U.S. Securities and Exchange Commission (SEC) has recently shown a pro-cryptocurrency stance and is moving toward deregulation."

The SEC was an agency that, during the previous Joe Biden administration, warned about the risks of cryptocurrencies and advocated for strict regulation. However, with the launch of the Trump administration, it has shown an active stance toward deregulation of cryptocurrencies. On the 23rd of last month, the SEC also released SAB122 guidelines, which nullify SAB121 guidelines that considered cryptocurrencies held by financial institutions with disclosure obligations, such as banks, as liabilities in accounting management.

Additionally, the SEC launched a cryptocurrency task force (TF) on the 21st of last month, the day after the Trump administration took office. The TF team is led by Commissioner Hester Peirce, known as the 'Crypto Mom.' Researcher Kim said, "It is necessary to observe future developments such as the priority of tasks proposed by the TF team and the specific execution of these tasks," and evaluated, "It seems to focus on establishing a regulatory framework to ease cryptocurrency regulations and resolve uncertainties in related industries."

Not only the SEC but also the U.S. Congress is launching a 'Digital Asset Working Group' in line with President Trump's cryptocurrency policies. Researcher Kim predicted that the group "will review the overall future policies and legislation on digital assets, the stockpiling of Bitcoin as a strategic asset, and the practical feasibility of cryptocurrency policies mentioned by President Trump during his candidacy." Accordingly, a report containing related policy proposals is expected to be prepared within the year. She noted, "Ultimately, the concrete implementation stage related to the promotion of pro-cryptocurrency policies in Trump's second-term government can be gauged after the release of their report."

In particular, Researcher Kim emphasized that since the launch of the Trump administration, there have been signs of preparing for this pro-cryptocurrency trend domestically as well. Earlier, on the 13th, the Financial Services Commission disclosed a roadmap for participation in the cryptocurrency market and announced policies such as allowing corporate real-name accounts.

Researcher Kim mentioned, "Since changes in cryptocurrency regulations in the U.S. have a significant impact on the domestic market, it is necessary to continuously pay attention to the Trump second-term administration." Although the market capitalization of cryptocurrencies, including Bitcoin, has decreased over the past month since the Trump administration took office without specific related policies, she said, "Due to the nature of the cryptocurrency market, if news that can identify policy directions emerges, it will be quickly reflected." She added, "Currently, in the early stage of Trump's second term, attention should be paid to news flow and volatility expansion."

This content was produced with the assistance of AI translation services.