The cryptocurrency market experienced intense fluctuations after $Trump, a meme coin minted by incoming US President Donald Trump, briefly lost more than half of its market capitalization. The disruption followed the debut of $Melania, a competing token launched by his wife, Melania Trump.
Market Movements: $Trump and $Melania
- $Trump’s Rapid Rise and Fall: The token’s value surged to over $70 (£57), with a capitalization exceeding $14 billion, before plummeting more than 50% to $30 upon $Melania’s launch. It later recovered to $64.
- $Melania’s Meteoric Launch: The rival token quickly reached a market cap of $13 billion, adding to the volatility.
- Top 20 Cryptocurrency Status: Both tokens now rank among the top 20 cryptocurrencies, causing traders to shift from other meme coins into the Trump market.
Bitcoin Hits New High
The excitement surrounding these tokens, coupled with speculative trading, pushed Bitcoin prices to a record-breaking $108,943.
Impending Crypto Executive Order
Adding fuel to the market dynamics, Trump plans to release an executive order prioritizing cryptocurrency. Key proposals include:
- Designating cryptocurrency a national priority.
- A directive requiring all government agencies to review crypto policies.
- Halting ongoing litigation involving crypto cases.
Market Reaction
While the Trump tokens have galvanized parts of the cryptocurrency ecosystem, analysts are divided on the long-term sustainability of such speculative assets. However, the administration’s favorable policy stance signals a potentially bullish environment for cryptocurrencies during Trump’s presidency.