Bitcoin Retreats After Trump's Inauguration, Memecoins Spark Volatility.
Bitcoin retreated from a record high amid heightened swings in crypto markets around Donald Trump’s inauguration as the 47th US president. Traders anticipate pro-crypto policy directions from Trump as part of a blitz of executive orders. The largest digital asset changed hands at about $103,700 as of 4:25 p.m. Monday in New York, down from an earlier peak of $109,241.
“Crypto is upset that President Trump didn’t promise something specific on Bitcoin in the inaugural address,” said Matt Hougan, chief investment officer at Bitwise Asset Management. “My advice: read that sentence again. We’re at the point where we expect Presidential inaugural speeches to reference Bitcoin.”
Prior to his inauguration, Trump and his spouse Melania introduced memecoins that caused significant fluctuations in the market by redirecting investment flows. Subsequently, investors began to view this initiative as a potential motivator for Trump to adopt policies favorable to cryptocurrency.
Crypto Capital According to previous reports from Bloomberg News, Trump is contemplating an executive order that would classify the asset class as a “national priority.” During his campaign, Trump transformed into a strong advocate for the digital assets sector, despite having previously labeled Bitcoin as a scam.
He has committed to establishing the United States as the leading hub for cryptocurrency and has supported the concept of creating a strategic reserve of Bitcoin. The broader cryptocurrency market, aside from Bitcoin, exhibited mixed results, with notable increases in assets such as Ether and XRP. The Trump memecoin was trading at approximately $40, based on data from aggregator CoinMarketCap, having reached a total market capitalization exceeding $15 billion on Sunday before experiencing a sharp decline. The introduction of the Trump and Melania memecoins faced criticism from several industry leaders, who expressed concerns that such initiatives could trivialize the cryptocurrency sector.
A contrasting perspective was offered by Ben El-Baz, managing director of HashKey Global, who indicated that the tokens introduced by the Republican and his team have significantly boosted Bitcoin's momentum, as retail investors anticipate that his administration will "prioritize and reaffirm his commitment to the crypto industry."
Memecoins represent a category of cryptocurrency characterized by dubious intrinsic value and considerable volatility. Their price fluctuations are largely influenced by trends on social media, allowing them to rise rapidly before potentially plummeting just as swiftly.
Trump Token Eighty percent of the Trump token is held by an affiliate of the Trump Organization known as CIC Digital LLC, along with a related entity named Fight Fight Fight LLC, a title that recalls Trump's reaction after a bullet grazed his ear during the campaign.
The release of their holdings will occur over a span of three years. The website indicates that 200 million tokens were made available immediately, with the total supply expected to reach 1 billion over the next three years. The fine print on the website clarifies that the token is not designed to serve as an "investment opportunity, investment contract, or security of any type." Nevertheless, major exchanges such as Coinbase Global Inc. and Binance Holdings Ltd. announced over the weekend their plans to list the token on their platforms. Additionally, Robinhood Markets Inc. confirmed on Monday that it had also listed the token.
