Market Fluctuations Amid Inauguration Day: Solana and Memecoins Take a Hit
Following President Donald Trump’s inauguration, cryptocurrency markets experienced intense volatility, particularly impacting memecoins and popular altcoins.
Key Highlights:
- The cryptocurrency landscape fluctuated as President Trump took office, with Solana experiencing nearly a 10% decline from its peak value.
- Official memecoins from President Trump and First Lady Melania saw significant drops, with values plummeting by 30% and 46% respectively.
- The tumultuous trading day led to over $700 million in liquidations across various crypto positions, with a cumulative total of more than $1.2 billion in the previous 24 hours.
Crypto traders had initially anticipated pro-crypto messages from Trump’s inauguration but were left disappointed as he did not mention the digital asset sector in his address. The CoinDesk 20 Index fell by over 5% during the event, reflecting the market’s reaction.
The meme coin TRUMP, which launched shortly before the inauguration, tumbled 30% during Trump’s speech, with a partial recovery still leaving it down 20% from earlier highs. Melania’s associated token also struggled amid regulatory criticisms.
The resulting volatility ignited major liquidations of leveraged positions on crypto derivatives, marking one of the most significant wipeouts of the year.
Anticipation for Trump’s presidency raised hopes for a more favorable regulatory environment; however, the speculative frenzy around newly launched meme tokens triggered skepticism among industry veterans, including Congresswoman Maxine Waters and investor Nic Carter.
“This meme coin represents the worst of crypto and shows why many regulators have been cautious,” Waters expressed in a statement.
Read more about the developments on the CoinDesk website.
