Thus far, Donald Trump’s presidency has been a mixed bag for the cryptocurrency market.
Investors initially took Trump’s pro-crypto stances as a bullish signal. However, there has been a lack of clarity on proposed regulatory changes. The controversial launches of the President and the First Lady’s memecoins shook investor confidence.
On March 2, Bitcoin (BTC) surged to $94,000 following the commander-in-chief’s announcement that a strategic cryptocurrency reserve would be created.
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Despite an initial wave of optimism, Donald Trump’s announcement of new tariffs on China, Canada, and Mexico on March 4 sent a shockwave through financial markets. This culminated in a risk asset sell-off that saw $80 billion wiped out from the crypto market within a day.
Although there are plenty of silver linings to be found, and these pullbacks might very well turn out to be temporary, investing in Bitcoin when Trump took office would not have secured a profit as of March 5. Let’s take a closer look at the exact figures of this hypothetical trade.
Bitcoin has seen a double-digit decrease in price since Donald Trump’s inauguration
Donald Trump’s second term as President started on January 20. At the time, Bitcoin was trading at a price of $101,280.
Since the time of Trump’s inauguration, Bitcoin has failed to break through to the upside in a meaningful manner, and recent developments have caused a sharp correction in the price of the leading digital asset. By press time on March 5, Bitcoin was changing hands at a price of $89,590.
That figure equates to an 11.54% drop from January 20. Accordingly, a $1,000 investment made on the day that Donald Trump took office again would now be worth $884.60, with a net loss of $115.40.
In contrast, at the time of the election, Bitcoin was trading at $68,290. Investors who made a $1,000 investment on that fateful November 5 day would have benefitted from a 31.19% surge, and their position would now be worth $1,311, for a $311 gain.
Lastly, readers should note that per Secretary of Commerce Howard Lutnick, Donald Trump will reveal a strategy for his long-awaited Bitcoin Reserve at the inaugural White House Crypto Summit on Friday, March 7.
While not many specifics are known at this time, the summit has the potential to set the tone not just for Bitcoin, but the wider cryptocurrency market going forward — and that tone could very well be bullish.
Featured AI image from Shutterstock
