Trump's Silence Shakes Cryptocurrency Markets: Record Volatility in Bitcoin! - Coin Bulletin

Trump's speech at the inauguration did not contain any clues about any executive order related to crypto. However, this did not prevent the significant volatility movements that had previously occurred in the market.

According to QCP's analysis, investors increased volatility along with pre-ceremony speculation, and front-end vols values significantly rose. Options expiring on Friday traded within a 25v range in just 24 hours, creating a record level of vol-of-vol (volatility of volatility) in the markets. Trump's failure to mention crypto in his speech triggered gradual selling pressure and resulted in the liquidation of a total of 816 million dollars worth of long positions.

Trump and the New Era: Is More Volatility on the Horizon?

The market volatility created by Trump from the first day has not only affected the crypto market, but also the traditional markets. The threat of imposing a 25% tariff on Canada and Mexico has increased market sensitivity to volatility. This is seen as a signal that the new administration will further trigger uncertainty-focused market movements.

In the cryptocurrency field, questions about whether Trump will create a potential national strategic Bitcoin reserve are still on the agenda. This uncertainty has caused the front-end vols of Bitcoin to remain in a backwardation trend.

States Are Acting Independently

In the crypto world awaiting Trump's moves, some states are taking independent action. According to Bloomberg, eight states including Texas and Massachusetts have proposed creating their own crypto reserves, and five more states are preparing to follow suit. This situation indicates a fragmented progress in the overall crypto strategy of the United States.