Bitcoin and cryptocurrencies have fallen sharply in the last 24 hours, and the new president of the U. S. has been a major player in the U. S. U. S. Secretary of State Donald Trump did not mention Bitcoin or cryptocurrencies.
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The value of bitcoin had hit a record high on Monday morning as Trump began his inauguration, but plummeted because it seemed highly likely that Trump would drop cryptocurrencies from his first-day actions.
Today, after blowing up the bitcoin and cryptocurrency market over the weekend, new memecoins $trump and $melania of first American girl Melania Trump fell as investors cashed out.
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Trump’s memecoin has fallen through 30% in the beyond 24 hours, whilst $melania has fallen through more than 50% after either coins soared after exiting.
“I think in the short term, there’s a chance that this is simply an information-selling event,” Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, told Reuters, adding that the crypto market has incorporated positive decrees. The first day of Trump’s return to the White House.
In July, then-Republican candidate Donald Trump promised to create a “strategic national bitcoin reserve” and predicted that bitcoin could eclipse gold’s $16 trillion market cap in dollars, in an appearance at the Bitcoin 2024 conference.
“The marketplace be expectings a lot from a strategic reserve of Bitcoin and an easing of regulations around virtual assets, yet it is more most probably that those advancements will take place in dribs and drabs over a series of months than days,” Dibb said. “Bitcoin has already pulled back. . . We be expecting more volatility here and probably a sell-off. “
Trump’s memecoin surged to a market capitalization of almost $15 billion over the weekend but crashed back after it was announced Melania had issued her own coin, with traders rushing to exchange $trump for $melania and panicking that there could be more Trump family memecoins on the way that could weigh on prices.
“Bitcoin’s climb above $106,500 during president Trump’s inauguration quickly lost steam, sliding to around $100,500 once it became clear no formal endorsement—such as a strategic bitcoin reserve—would be announced in his speech,” Mena Theodorou, cofounder at crypto exchange Coinstash, said via email.
“The pullback extended across the market, hitting $trump and $melania tokens particularly hard. Within the hour, bitcoin rebounded to the $102,000 to $104,000 range, signalling markets remain bullish. While investors may be disappointed that Trump did not address digital assets directly, purchases by Trump’s World Liberty Financial for $47 million of both bitcoin and ethereum to mark his inauguration as the United States’ 47th presidency speak louder than words—fueling optimism for broader crypto support ahead.”
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The value of bitcoin fell after reaching a new all-time high before Donald Trump’s inauguration.
The Trump family’s decentralized finance (DeFi) project World Liberty Financial, which completed its $300 million token sale last week, bought around $112 million worth of cryptocurrencies, added around 50 million Ethereum dollars and wrapped Bitcoin along with around $5 millionArrayAave, Link, Tron and Etenea.
While the outlook for cryptocurrencies could be positive if Trump follows through with his crypto plans, analysts have warned that other people are rushing to buy new memecoins that may possibly be announced.
“If Donald Trump helps deliver on his election promises, we may see crypto markets continue to grow,” Morningstar director Kenneth Lamont said in emailed comments.
“However, investors would do well to resist the siren song of worry about being left out in the cold and sitting on their hands,” Lamont said. “Trump’s official currency, $trump, was announced on Friday and as of midday Sunday, the new meme currency had a market capitalization of just under $14 billion before falling just a day later following news of the move by $melania”.