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Trump Couple's Memecoin Boosts Crypto Market Sentiment: Could Bitcoin See a Strong Catalyst?
President-elect Donald Trump announced the launch of his meme coin, $TRUMP, on Truth Social last Friday night. The coin surged over the weekend, briefly hitting a market capitalization of $15 billion by Saturday night and early Sunday. As of Monday morning, CoinMarketCap data showed its valuation at approximately $11 billion.
On Sunday, Melania Trump introduced her own meme coin, $MELANIA, temporarily overshadowing $TRUMP and causing its market cap to drop below $8 billion. By Monday morning, $MELANIA's market cap stood at about $1.5 billion.
High Risk in Meme Coins
The memecoin drama over the weekend surprised even seasoned crypto industry veterans. The turn of events was 'wild,' something even the crypto sector hadn't quite envisaged," said Caroline Mauron, co-founder of Orbit Markets, a crypto derivatives liquidity provider. "I suppose a more conventional policy approach was expected — which may still be coming."
Despite the initial buzz around $TRUMP and $MELANIA, meme coins are known for volatile price swings, as seen with Dogecoin.
Balaji Srinivasan, angel investor and former CTO of Coinbase Global Inc., warned on X that meme coins are a zero-sum "lottery," where prices eventually crash, leaving late buyers with significant losses.
The Kobeissi Letter, an analytical firm, cautioned that such market mania poses substantial risks. Investors should approach meme coins with caution to avoid losses from herd behavior.
The Trump family's coin launches sent shockwaves through the broader cryptocurrency market, with $Bitcoin (BTC.CC)$ experiencing significant volatility over the weekend. Bitcoin briefly dipped below $100,000 but rebounded to over $109,000.
Bitcoin's Outlook
Trump's token launch is seen by some as a sign of digital currencies gaining mainstream acceptance in the US. Beyond the weekend's meme coins, there is greater market interest in what measures Trump might implement to boost the crypto sector and Bitcoin, the largest cryptocurrency.
Bloomberg reported last Friday that President-elect Donald Trump plans to issue an executive order designating cryptocurrencies as a "national priority," according to sources familiar with the matter.
Jonathan Yark, senior quantitative trader at crypto market maker Acheron Trading, remarked that the meme coin "confirmed that digital assets and, most importantly, Bitcoin will have the backing of the US, which presents significant opportunities."
The tokens introduced by Trump and his team have further accelerated Bitcoin's momentum, as retail traders anticipate his administration will "prioritize and reaffirm his commitment to the crypto industry," according to Ben El-Baz, managing director of HashKey Global.
Since the election, Bitcoin has surged, surpassing $100,000 in mid-December to reach a record high. This marks an approximately 50% increase from its November 5 price. Over the weekend, $Bitcoin (BTC.CC)$ hit a new peak, reaching as high as $109,640.
In the short term, calendar effects may continue to drive Bitcoin higher. Historically, February has been one of Bitcoin's best-performing months.
According to Bitcoin Magazine, the historical average return for February since 2010 is 13.62%. In years following a halving, February's performance is even more notable, with Bitcoin rising 62.7% in 2013, 22.7% in 2017, and 36.8% in 2021.
Technically, analysts see strong upward momentum for Bitcoin. On January 17, crypto analyst Ali noted on social media that Bitcoin had broken out of a cup-and-handle pattern, suggesting a potential upside target of $276,400.
Source: Forbes, NY Times, Reuters, Bloomberg, FXStreet, Bitcoin Magazine
by moomoo News Olivia
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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励哥 : Magical world
一株冲天 : on the contrary, I think they are not taking it seriously and treating it as a game or a joke.
Melbin Castillo : $Tesla (TSLA.US)$ 25.00
Boonlert Chang : H
投机的阿妍 一株冲天 : The president leads by example in cutting chives.
卓文峯 : No money to do things well, have money to cultivate people well.
Joseph’ : What is Trump's bottom line? What tricks will he play for money?
一株冲天 Joseph’ : no bottom line. but millions will continue to gullible and play into his hands
熊猫爸爸 : Tomorrow Barron currency will be coming out, still boosting, let's suck blood.
Joey Hall508 : Talk about pump and dump. This is going to be worse than the 2008 housing market bust. How many coins are there now? 12,000+. What more needs to be said. Sure, I'll pump and dump. Long-term doesn't apply here. Should have bought Bitcoin in 2009. I could handle losing $1.94 a coin. Now, only the rich can buy 1 Coin. But they will sell you $5.00 worth. They could at least give you a coin. Not a picture of one.
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