Trump and Melania Experience Unexpected Fall as Bitcoin Value Plummets
Bitcoin and cryptocurrency prices took a hit within the past 24 hours due to President Trump's absence of mentioning Bitcoin or cryptocurrencies during his inauguration speech. This sudden drop was magnified as the Bitcoin price had soared to an all-time high earlier that day, but the hope of Trump's crypto-friendly policies began to fade as his inauguration carried on.
After creating a buzz over the weekend with the launch of his TRUMP and MELANIA memecoins, these newly launched tokens took a significant plunge as traders cashed out their holdings. The TRUMP token dropped by 30% and the MELANIA token plummeted more than 50% following their launch.
Matthew Dibb, chief investment officer at Astronaut Capital, acknowledged the potential market reaction, stating, "I think in the short term, there's a chance this could be a sell-the-news event." Dibb continued to explain that the crypto market had priced in positive executive orders being announced on Trump's first day back in the White House.
Looking back, Donald Trump had expressed plans back in July to create a "strategic national Bitcoin reserve" during his election campaign and even predicted that Bitcoin could potentially surpass gold's $16 trillion market capitalization. However, analysts believed that these developments would likely be implemented gradually rather than immediately.
Trump's memecoin, which had achieved a market capitalization of almost $15 billion over the weekend, suffered a sharp decline after the release of Melania's memecoin. Investors rushed to exchange their holdings of TRUMP for MELANIA tokens, causing panic and uncertainty about further Trump family-related memecoins that may affect prices.
Mena Theodorou, the co-founder of Coinstash, pointed out that, despite the disappointing speech, investors should remain optimistic, given Trump's purchases of both Bitcoin and Ethereum to mark his inauguration.
While Trump's intention to tackle crypto legislation may positively impact the crypto market, analysts encourage investors to be cautious before jumping in on new memecoins. As Kenneth Lamont, Principal at Morningstar, stated, "The official Trump coin TRUMP was announced on Friday and by mid-day Sunday, the newly-minted meme coin had a market cap just short of $14 billion before tumbling just a day later following the news of MELANIA coin."
The sudden drop in Bitcoin and cryptocurrency prices after President Trump's absence of mentioning them during his inauguration speech also affected the TRUMP and MELANIA memecoins, causing a significant plunge in their prices. Despite Trump's expressed plans to create a "strategic national Bitcoin reserve" during his election campaign, the crypto market had priced in positive executive orders being announced on his first day back in the White House, leading to a potential sell-off once these expectations were not met. Moreover, Trump's memecoin faced a sharp decline following the release of Melania's memecoin, as investors rushed to exchange their holdings of TRUMP for MELANIA tokens.
