It is very headshaking that the reaction of the market is not so very positive.
That's because bitcoin price is not majorly affected by some local regulations in a small part of the world. There are a lot of other more important factors affecting it. Factors like the global economy and specifically recession.
Trump's policies have created a lot of uncertainty and has hurt the global economic stability. And to put simply when things go south, people tend to sell "risky assets" and turtle down. This is why something like gold has been soaring again.
Donald Trump's crypto related policies have created a lot of uncertainty like you rightly said but we can't shy away from the fact they were also created a lot of optimisms among Bitcoin enthusiasts. Many people who never believed in Bitcoin before now are now interested in Bitcoin because of the recent policies and statements of the most powerful man on the planet concerning Bitcoin.
The price of Bitcoin at the moment might not necessarily meet our desires but there's a strong hope that the market will be bullish in no distant time
Even mentioning the word "bitcoin" on any scale would be a positive thing for it and will get people interested in it. But the problem is that as long as the prices keep going up (aka inflation) and the people's incomes go down (ie. recession) these people who got interested won't have any money to buy bitcoin with.
Which is what I've been saying for the past 3 years and is the reason why I believe price is not yet $1 million despite what previous cycles bubble sizes suggested we'd have to reach...