Bitcoin hits a new high of $109,071, while Donald Trump’s new cryptocurrency token surpasses $10 billion in market value.
The market value of US President Donald Trump’s new cryptocurrency token has surged to over $10 billion, and excitement over his administration’s pro-crypto stance briefly caused Bitcoin to reach a new high.
Before losing some of its gains on Monday, Trump’s so-called “memecoin” soared from less than $10 on Saturday morning to as high as $74.59. According to cryptocurrency price tracker CoinGecko, the coin, which is branded as $TRUMP, was last trading at $33.88, as of this writing.
A different cryptocurrency project associated with Trump, World Liberty Financial, also declared on Monday that it had raised $300 million from its first token sale and would consider issuing more.
On the day after Trump was inaugurated in as the 47th President of the United States, Bitcoin, the largest cryptocurrency in the world, reached a new high of $109,071. However, it rapidly retreated these gains and was last trading at $101,867.40.
The Solana blockchain was used to produce the Trump and Melania cryptocurrencies, the latter of which was introduced on Sunday.
Over the weekend, Solana’s coin’s value increased as well, reaching an all-time high of $294.33 on Sunday.
Crypto investors had been expecting some executive measures to be rolled out on Trump’s first day in office, according to Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital. “I think in the short term there’s a chance this could be a sell-the-news event,” he added.
Bitcoin has already pulled back. Here, we anticipate more volatility and probably a selloff.
Trump’s cryptocurrency token began trading below $10 on Friday but surged rapidly, reaching a high of $72.62 on Sunday. Later in the day on Monday, it was trading in the $30 region after dropping from $52.15 earlier in the day.
According to its website, CIC Digital, an offshoot of Trump’s company, and another organization named Fight, Fight, Fight possess 80% of the tokens of Trump Coin.
According to the statement, the coins are not securities or investments, but rather “an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP'”.
Speculative assets
Recent months have seen a surge in cryptocurrency values due to excitement over anticipated regulatory steps that could spark a radical shift in US cryptocurrency legislation.
“The market has some great expectations about a bitcoin strategic reserve and a loosening of regulations around digital assets, but it’s more likely these developments will be drip-fed over a series of months rather than days,” Dibb said.
Some observers were alarmed by the sharp increase in the price of the new coin. “Meme cryptocurrencies, like these, are prone to large fluctuations, and we generally consider them as speculative assets,” said Grzegorz Drozdz, who works as a market analyst at Conotoxia Ltd.
According to Justin D’Anethan, an independent crypto analyst based in Hong Kong, Trump’s coin “blurs the lines between governance, profit, and influence,” but it also symbolized a melding of the world of digital assets into the political sphere.
