Bitcoin, the frontrunner in the cryptocurrency realm, has shattered previous records by surpassing a staggering $109,000 earlier this week. This surge comes as the anticipation mounts for the inauguration of President-elect Donald Trump.
Trump Family Shakes Up the Crypto Market with Memecoins
In a recent report by CNBC, the dramatic rise in Bitcoin’s value has been, in part, influenced by the Trump family’s foray into memecoins. Over the weekend, Donald Trump launched the "Official Trump" (TRUMP) memecoin. Since its introduction on Friday, this coin has soared to a remarkable market cap of $10.6 billion, marking an incredible 659% growth.
Yet, the TRUMP memecoin hasn’t been immune to ups and downs. By Monday, it had dipped about 27% from its peak value of $73 per coin.
Meanwhile, Melania Trump joined the crypto scene with her own memecoin, aptly named "Melania," which went live on Sunday evening. This newly launched coin has achieved a $1.3 billion market cap, growing by 14% since it hit the market.
The debut of Melania’s memecoin significantly impacted the official Trump coin’s standing. TRUMP’s market cap was nearly halved at one point, dropping from being the 12th largest cryptocurrency to now ranking 22nd.
Despite the inherent uncertainties of investing in memecoins, these new crypto launches seem to have breathed fresh life into the market. They’ve sparked a hopeful sentiment among traders, hinting that the new administration might take a friendly approach towards cryptocurrencies.
Joel Kruger, a market strategist at LMAX, interpreted these moves as President Trump’s commitment to embracing the crypto space. He emphasized the idea that Americans should have the liberty to engage with emerging asset classes.
“President Trump’s embrace of crypto highlights his belief in market freedom, particularly within the burgeoning asset class,” Kruger noted.
Kruger went on to point out that by endorsing memecoins, the family was boldly supporting what is often seen as one of the most speculative areas of the cryptocurrency market.
Economist Noelle Acheson, who writes the “Crypto is Macro Now” newsletter, shared this view, seeing the launch of these memecoins as a promising sign and an indication of Trump’s openness to innovative financial ideas and markets.
Analysts Remain Bullish on Bitcoin: $130,000 Could Be Next
Bitcoin’s latest rally began picking up speed last week, fueled by speculation that Trump might issue an executive order to make cryptocurrency a significant priority during his administration.
Gracy Chen, the CEO of Bitget, a cryptocurrency exchange, highlighted that this optimism is playing a crucial role in shaping Bitcoin’s price rise. “There are buzzing rumors that cryptocurrency could be declared a national interest at the inauguration, which is positively affecting Bitcoin’s value,” Chen observed.
However, she cautioned that the advent of the Trump family tokens has diverted some capital that might have otherwise bolstered Bitcoin’s growth.
Looking forward, experts remain positive about Bitcoin’s potential trajectory. Having broken past $109,000, some analysts, including Kruger, are speculating that it could shoot up even further, possibly reaching the $130,000 mark.
Currently, Bitcoin is holding steady around $107,730. This slight 0.5% dip occurred amid the last few hours of trading leading up to Trump’s inauguration.
The article is accompanied by a chart from TradingView.com, illustrating Bitcoin’s upward trend.
Featured image is credited to DALL-E, with the accompanying chart sourced from TradingView.com.
