The crypto market reacted to the absence of cryptocurrency in President Trump’s inauguration speech with $816 million longs wiped out.
Massive Sell-Off After Crypto Snub in President Trump’s Inauguration Speech
This article was published more than a year ago. Some information may no longer be current.
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Lack of Crypto Mention By President Trump Sees Market Plummet
The market gradually saw a sell-off after President Trump’s address omitted any mention of cryptocurrencies, according to QCP Group’s market insights for Jan. 21. This caused long positions to lose up to $816 million.
As such, bitcoin‘s implied volatility curve remained inverted, signaling a significant short end. As markets await Trump’s decision over a possible strategic national bitcoin reserve, states are taking independent action.
Texas and Massachusetts are among the eight states that have sought to create cryptocurrency reserves with five more states expected to do the same.
Based on the uncertainty still lingering on crypto-related executive orders, short-term options implied volatility remained strong with the short-term volatility of bitcoin also increasing dramatically.
Whether the Trump administration will implement a national bitcoin reserve strategy within the first weeks of President Trump’s administration is another issue that the market is also very interested in.
