Despite positive news for Bitcoin as a whole, US President Donald Trump's latest actions have led to a drop in value for the cryptocurrency in a move that is likely to confuse all but the most dedicated of traders.
Cryptocurrency has been a particular focus of President Donald Trump's election campaign and post-victory plans despite being something that he was previously vocally against, and Bitcoin has been the biggest beneficiary of that.
Trump, with the support of Elon Musk, has weighed up topics of digital asset regulation and even a crypto stockpile, with Musk arguing that cryptocurrency was the only way that America could pull itself out of unsustainable bankruptcy.
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He has even dipped his toes in the world of crypto with his own meme coin which soared on the market prior to his inauguration. It's rise was only halted by the release of a Melania Trump themed coin, showing the power of their moves in the market.
Latest actions from the president have seen him create a working advisory group to offer guidance on crypto policy, as reported by Yahoo Finance, with a resolution expected to be reached in six months and a Bitcoin reserve likely on the horizon.
Yet, despite this being incredibly positive news for the coin, Bitcoin actually saw a significant drop, particularly on the morning of Monday January 27 where the prices tanked by just under $10,000 in around an hour.
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Experts infer that this drop is because Trump's actions were already taken into account, as it has been somewhat clear that this would be coming eventually since his campaign trail and thus the price was set as if it were already truth.
You can see the result of this in action when looking at the Bitcoin price before and after the election result on November 5 last year. Prior to Trump's win it was sitting at around $67,000, and by the end of the month it hit a high of $99,000 and would soon breach the $100,000 mark shortly after.
While it has largely stabilized around this region ever since, the recent confirmation of Trump's plan to invest in crypto did see those who were holding finally release their funds.
Sean McNulty, head of APAC derivatives at FalconX explains: "Even though the market got 90% of what it wanted with the executive orders, it evidently was mostly priced in." He added that the only thing that would have stopped a drop would have been if the government had "immediately started buying BTC."
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It certainly was an active market though, as in the last 24 hours alone CoinMarketCap indicates that around $74,880,000,000 worth of Bitcoin was traded which marks an increase of 270.65%.
It has once again returned to the positive side of the $100,000 mark, settling in at around $101,000 as the day goes on, but it goes to show how much volatility crypto can hold even after positive news is received.
On top of this, reports indicate that the emergence of open source ChatGPT competitor DeepSeek could also pose a threat, or at least market instability, as many wait for Trump to 'retaliate' to the disruption of US-dominated AI markets.