The recent swearing-in of Donald Trump as the 47th President of the United States had sent shockwaves in the cryptocurrency market when he introduced his and Melania Trump’s meme coins, $TRUMP and $MELANIA. The tokens initially created a sensation that sent Bitcoin high up in the air. However, a few days later, both Trump’s family coins and Bitcoin themselves fell drastically, raising a question as to whether such an investment is sustainable.
First surge: New era for crypto?
A hype had started to build in the run-up to Trump’s inauguration on January 20, 2025. Bitcoin surged to a then-record high of about $109,071.86 at the time amidst speculations regarding Donald Trump’s very crypto-friendly attitude and his meme coin launch known as $TRUMP. The token itself took off in a rush, moving from just $10 to an all-time high of about $74.59 in the days following its release. Melania Trump followed suit with her own cryptocurrency, $MELANIA, which also rose nicely, breaking through a market capitalization of more than $1 billion shortly after its release.
The excitement was in the air; to many investors, these launches were symbolic endorsements by influential political figures of cryptocurrency. The Trump coins were hawked not just as investment instruments but as tokens of support for the ideals of Trump. This euphoria, however, would be very short-lived.
The crash: Reality sets in
Both tokens cratered less than a day into Trump’s presidency: $TRUMP fell over 50% from its high, after trading at approximately $383; $MELANIA experienced a shocking almost-74% drop in value at approximately $4.19 in a 24-hour period. At the same time, Bitcoin fell back to about $102,853-a relatively modest decline considering the spectacular dives taken by the tokens named after Trump.
It was attributed by these market analysts to a set of factors. Most notably, Trump’s inaugural speech had no mention of cryptocurrencies or the pending regulatory overhaul expected in the short term. Hence, the investor was left speculating about how Trump’s administration was going to navigate the cryptocurrency policies.
Speculative nature of meme coins
Volatility exemplified by $TRUMP and $MELANIA really characterizes the speculation associated with meme coins as a whole. These can build up hype to cause rapid price increases, but long-term sustainability remains very dubious. A number of critics have raised ethical concerns about public figures who proceed to launch personal cryptocurrencies. This, they said, opens U.S. politics to foreign influence through speculative investment.
Analysts have further warned that these are not serious investments but rather speculative in nature and sure to manifest extreme price fluctuations. The rapid rise and fall of such tokens are a warning for investors who follow hype over fundamentals.
Bitcoin resilience amid speculation
Against all the mayhem from the Trump family’s cryptocurrencies, Bitcoin was resilient. Having topped out above $109,000 in advance of the inauguration, it settled back to around $103,000-still well up from pre inauguration levels. According to analysts, broader market trends and investor confidence in the cryptocurrency’s long-term potential may account for the stability of the price.
Looking ahead, many predict the price of bitcoin will shoot much higher in 2025. Predictions range everywhere; some predict that based on the prior year’s historical pattern, the prices will shoot up into the $170,000 range by March. Others also warn that major fluctuations are again likely due to broader macroeconomic drivers and regulatory matters.
Regulatory environment: One key driver
The obvious question, now that Trump is settling into office again, involves how his administration will regulate-or not-cryptocurrencies. Trump in the past has spoken about his desire for the U.S. to become “the crypto capital of the planet” and suggested he would seek to lessen regulatory barriers for digital assets. But his inauguration day did not bring any immediate executive actions on cryptocurrencies, leaving investors to wonder at potential policy directions.
Lack of clear regulatory frameworks may breed uncertainty in the market. Analysts are warning that, without guidance from government officials, speculative investments like meme coins will continue to attract scrutiny and volatility for quite some time yet.
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