Bitcoin (BTC) faced losses during Monday’s morning trading in Asia, dropping 4.5% to briefly fall below $100,000. Other cryptocurrencies like ETH, XRP, SOL, and BNB experienced even larger declines, with ADA and DOGE losing over 10%, according to CoinMarketCap.
The recent trading frenzy was sparked by two new memecoins: TRUMP and MELANIA. TRUMP, linked to President-elect Donald Trump, saw a significant drop of 30% to $49 after its launch on Saturday.
Meanwhile, Melania Trump introduced her own memecoin, MELANIA, which quickly surged by an astonishing 24,000% to reach a peak price of $13. This rapid rise in MELANIA’s value is believed to have drained liquidity from the TRUMP coin, which had been the most-traded asset on Binance over the weekend.
Some analysts suggest that the trading activity surrounding these memecoins indicates a fear of missing out (FOMO) phase in the current bull market, potentially leading to a correction in Bitcoin’s price.
However, others, like Jeff Dorman from Arca, view the launch of TRUMP as a positive sign for the cryptocurrency market. Dorman noted that regulatory concerns that have hindered token issuers and investors in the U.S. are now diminished, as the President himself is both an issuer and an investor.
Dorman emphasized that the TRUMP token signals a new era where cryptocurrencies can be utilized for capital formation and customer engagement by various entities, including companies and universities.
