US cryptocurrency stocks closed in the red, as investors awaited actions from President Donald Trump regarding his promises for the crypto industry. Despite expectations surrounding Trump’s first day in office, there was no immediate move or statement concerning cryptocurrency regulation, leaving the market in a state of uncertainty.

Crypto Stocks Struggle Amid Uncertainty

Shares of prominent crypto-related companies saw notable declines throughout the day. Riot Platforms (RIOT) fell by 4.85%, Marathon Digital Holdings (MARA) dropped by 1.76%, and Terawulf Inc (WULF) experienced a 6.88% dip. This weakness in crypto stocks contrasted with Bitcoin’s steady recovery, as it rose by 3.45% and traded at $105,770 at the time, approaching its recent all-time high of $108,659.

The mixed performance suggests that while Bitcoin remains strong, the broader crypto industry faces some headwinds, largely due to the lack of clarity from the U.S. government regarding its stance on digital assets.

Crypto Enthusiasts Look for Action from Trump

Industry participants were hopeful that President Trump’s first day in office would provide direction for the sector. Trump had made promises during his campaign to support the growth of the crypto industry, including the creation of a Strategic Bitcoin Reserve. However, his first day was largely devoid of any specific measures addressing cryptocurrencies.

On the same day, Trump did take action by pardoning Ross Ulbricht, the founder of the Silk Road, which led many to believe the president may still take steps to support the industry. Ulbricht’s pardon was a major moment for crypto advocates, as it seemed to signal Trump’s continued interest in the sector. This move, though delayed by one day, started optimism within the community.

Prominent Bitcoin supporter and venture capitalist Anthony Pompliano expressed his confidence on social media, suggesting that Ulbricht’s pardon was a sign of things to come. He believes that Trump’s plans for the crypto space would come into focus soon, pointing out that the pardon could pave the way for actions like the creation of the Strategic Bitcoin Reserve.

Broader Market Trends and Economic Outlook

While crypto stocks experienced declines, the overall US stock market showed modest growth. The S&P 500 index rose by 0.88%, reflecting positive sentiment about Trump’s administration and its pro-business approach. This increase in the stock market occurred after a break on January 20 due to the Martin Luther King Jr. holiday.

Additionally, the US Dollar Index continued its downward trend, falling 1.27% from a two-year high. It is currently trading above 108, suggesting potential implications for global trade, including the cryptocurrency market.

Will Trump’s Actions Impact Crypto Market?

The lack of immediate action on January 21 left the market in suspense. Investors and crypto supporters are keenly waiting to see if Trump will implement policies that could benefit the digital asset space. There is hope that the president’s pro-crypto stance will lead to positive changes such as favorable regulations for cryptocurrency miners and clearer guidance on the regulatory framework for digital currencies.

If Trump takes significant steps toward crypto, it could be a pivotal moment for the market. The potential for supportive legislation, including plans like the Strategic Bitcoin Reserve, could provide a boost to crypto stocks and offer much-needed certainty to the industry.

For now, the market remains cautious, with many crypto investors watching for any signs of movement from the new administration. Until then, crypto stocks and the overall industry are likely to remain volatile as they navigate the uncertain regulatory landscape.