Investing.com-- Bitcoin rose slightly on Friday, but was set for a muted end to the week as crypto markets took only fleeting support from President Donald Trump’s plans for friendlier crypto regulation.
The President’s recently launched memecoin, $TRUMP, also extended its losing streak amid heightened volatility after its launch last week.
While risk appetite improved after Trump called for lower interest rates and flagged a less severe stance on China, traders appeared to be largely biased towards stocks.
Crypto markets were also underwhelmed by a lack of clear details on an order from Trump for the creation of a national digital asset reserve, which made no mention of Bitcoin.
Bitcoin rose 2.6% to $104,772.5 by 00:23 ET (05:23 GMT). The crypto was trading below record highs of over $109,000 hit earlier this week, but was also trading above the week’s lows.
Trump orders creation of group to draft crypto regulations
Trump on Thursday issued an executive order calling for the formation of a working group aimed at drafting new digital asset regulations and exploring the potential for a national crypto stockpile.
The order, to some extent, delivered on Trump’s promises to quickly overhaul crypto regulation and create a friendlier environment for the industry. The order also banned the creation of central bank digital currencies in the U.S., and ordered that banking services to crypto firms be protected.
The working group under Trump’s order will consist of officials from several arms of the government, including the Treasury, the Commodity Futures Trading Commission and the Securities and Exchange Commission.
But the order sparked mixed reactions in crypto markets, given that the order still did not provide clarity on just what Trump’s policies will entail.
Traders were also unsure how Trump will create a national crypto reserve, given that any move requiring Congressional approval will likely face resistance from fiscally cautious lawmakers.
Additionally, the SEC on Thursday rescinded a major accounting requirement for organizations holding digital assets- SEB 121- which mandated strict disclosure requirements for companies providing digital asset custody services.
Crypto price today: altcoins upbeat, $TRUMP losses deepen
Broader crypto prices were mostly positive on Friday, although most tokens were headed for a muted weekly finish. World no.2 crypto Ether rose 5.4% to $3,369.80, while XRP rose 0.6% to $3.1571.
Among other altcoins, Solana, Cardano, and Polygon moved in a tight range, while Dogecoin rose 1%.
Among meme tokens, $TRUMP sank 9% to $34.192, extending its run of recent losses after a volatile launch last week.
While the memecoin’s launch was initially cheered by markets- which drove the coin to peaks near $80- it has since trended sharply lower. High volatility in the token, coupled with ethical concerns over Trump using his influence to manipulate markets, were the two biggest points of weight on the memecoin, which commanded a market capital of over $14 billion at its peak.
Still, the memcoin likely netted the President billions in paper gains.