Bitcoin’s price drops from all-time high in volatile trading on inauguration day – Business Times
coin traded at about US$40, according to figures from aggregator CoinMarketCap, having reached an overall market value of more than US$15 billion on Sunday before declining sharply.
The introduction of the Trump and Melania memecoins drew criticism from some industry executives, who expressed concerns that these tokens could make the crypto market appear frivolous. However, others viewed it as a positive development. Ben El-Baz, managing director of HashKey Global, highlighted that the launch of these tokens by the Republican duo has accelerated Bitcoin’s momentum. Retail traders are now looking forward to the administration prioritizing and reaffirming its commitment to the crypto industry.
Memecoins, such as the Trump token, are a type of cryptocurrency known for their uncertain intrinsic value and high volatility. These coins often rely on social media trends to increase their value, but can just as quickly experience a decline. An 80% stake in the Trump token is owned by a Trump Organization affiliate called CIC Digital and a related entity named Fight Fight Fight, echoing Trump’s response after an incident during his campaign. These holdings will gradually become available over a three-year period.
Gautam Chhugani of Bernstein noted that a meme coin leveraging Trump’s brand and political image could have long-term viability. Despite potential cringe-worthy reactions, Chhugani believes this marks the beginning of a new regulatory era for cryptocurrencies. The Trump token initially had 200 million units in circulation, with this number set to increase to one billion over the next three years.
While the token’s website states that it is not meant to be an investment opportunity, investment contract, or security of any kind, major exchanges like Coinbase Global and Binance Holdings still announced plans to list the token on their platforms. Furthermore, Robinhood Markets also confirmed the listing of the token on its platform. Jonathan Yark, a senior quantitative trader at Acheron Trading, viewed the memecoin as a confirmation of the US support for digital assets, especially Bitcoin, presenting a significant opportunity in the market.
In conclusion, the introduction of the Trump and Melania memecoins amid the fluctuating prices of Bitcoin highlights the evolving landscape of the cryptocurrency market. While these tokens have sparked debates within the industry, they also signify the growing influence of digital assets and the potential for regulatory changes in the future. As traders navigate the volatile nature of cryptocurrencies, the emergence of memecoins like the Trump token adds a new dimension to the market dynamics.
