Cryptocurrency Market Shaken as Trump Takes Office, Meme Coins Plunge.
The much-anticipated inauguration of former President Donald Trump has had a significant impact on the volatile cryptocurrency market, with Bitcoin and other digital assets, including newly launched Trump-branded tokens, experiencing a sharp decline.
Shortly after Trump’s swearing-in ceremony, the cryptocurrency market witnessed a notable pullback. Bitcoin, the world’s largest digital currency, retreated from its recent all-time high of $109,071 on Monday, trading at $101,705.40 at the time of reporting, according to Reuters.
The newly launched meme coin named after Trump also saw a drastic decline, with its valuation plummeting by nearly 50% – from a peak of $74.59 to $34.4.
The sharp decline in the crypto market is believed to be linked to the absence of any mention of cryptocurrencies in Trump’s inaugural address.
The speech focused on his plans for trade tariffs, immigration policy, energy deregulation, and a reprieve for the popular social media app TikTok, but did not address the digital asset landscape.
This lack of cryptocurrency-related initiatives in Trump’s speech has left many in the crypto market disappointed, as expectations had been high regarding potential regulatory changes or even the establishment of a “Bitcoin strategic reserve” under the new administration.
Matthew Dibb, the chief investment officer at crypto asset manager Astronaut Capital, suggests that the market may experience further volatility and a likely selloff, as investors had been anticipating more immediate action from the Trump administration on digital assets.
However, Trump’s involvement in the cryptocurrency market, including the launch of the $TRUMP and $MELANIA tokens shortly before his inauguration, has raised concerns over potential conflicts of interest.
Ethics experts and industry insiders have highlighted the need to address these concerns as the new administration takes shape.
