Undoubtedly, the launch of Trump’s memecoin [TRUMP] has created a division in the market. While some supporters see it as a brilliant move that enhances Trump’s positive image towards cryptocurrency, others criticize it as mere “manipulation” driven by hype for financial gain.
With over 100 executive orders issued, Trump’s once favorable stance on crypto has now shifted to a negative outlook. In the midst of market turbulence and Bitcoin being affected, the question arises – what lies ahead for the cryptocurrency market in the first quarter?
Scrutinizing TRUMP
The tokenomics of TRUMP are straightforward yet impactful. Over the span of three years, one billion TRUMP tokens will be gradually released into circulation. Currently, 20% of these tokens are in circulation, while the remaining 80% are held by associates of Trump’s Organization. Valued at $40 per token, Trump’s holdings account for a remarkable $6.4 billion.
Despite the initial hype that saw TRUMP soaring to an all-time high within 48 hours of its launch, it has now plummeted by 48%. This surge briefly inflated Trump’s token-driven net worth to over $12 billion, eliciting praise from supporters and skepticism from critics.
The 5% drop in Bitcoin [BTC]? It wasn’t a coincidence. The sudden shift of investor attention towards TRUMP led to a decrease in Bitcoin’s liquidity, causing exchange reserves to surge to 2.35 million in just two days.
However, the tide seems to be turning.
Despite the excitement surrounding Trump’s potential return to the White House, the value of his namesake memecoin has drastically dropped by 30% in a single day, reducing its market cap to $7 billion – a stark contrast to its initial surge driven by hype.
So, what’s truly unfolding? Are investors stepping back, awaiting Trump’s next crypto move, or are doubts creeping in regarding his commitments?
Prudence Versus Conviction?
The crypto market is navigating through turbulent waters characterized by extreme volatility. The saga of the TRUMP memecoin serves as a testament to this unpredictability.
Bitcoin, which recently reached an all-time high of $109K, experienced a quick 5% downturn, signaling a rapid decline in investor confidence. With diminishing risk appetite, the market is teetering on uncertainty.
Trump’s declaration of a “no crypto” stance buried within his series of executive orders has further clouded the market with doubt.
If TRUMP continues on its downward trajectory, Bitcoin could witness a significant sell-off. With a stake of $372 billion tied up in BTC, the upcoming weeks could determine whether a market crash is imminent or if there are prospects for recovery.
Prepare yourself – turbulent times are ahead.