On January 21, 2025, the official memecoins associated with U.S. President Donald Trump and First Lady Melania Trump experienced significant declines, with losses reaching as high as 60% within 24 hours. This downturn followed a period of heavy profit-taking after the inauguration, leaving many investors facing steep losses.
- Trump family tokens experience significant losses.
- TRUMP and MELANIA tokens saw 60% drops.
- High trading volumes indicate strong initial interest.
- Crypto markets disappointed by Trump's speech.
- Optimism remains for pro-crypto policies.
- Institutional investors watch for policy changes.
Trading volumes for the TRUMP and MELANIA tokens were notably high prior to the drop, with TRUMP recording over $19 billion and MELANIA $4.5 billion in transactions. However, the lack of anticipated pro-crypto remarks during Trump’s inaugural speech led to further declines in the broader cryptocurrency market.
The launch of the TRUMP and MELANIA tokens generated considerable interest in the cryptocurrency market, particularly among retail investors. As the tokens surged in popularity, trading platforms like Moonshot reported significant volumes, with TRUMP tokens alone reaching over $19 billion in a single day. This interest, however, quickly turned to losses as traders began to take profits, resulting in a rapid decline in token values.
In the wake of the inauguration, liquidation losses for futures traders betting on the price increase of these tokens approached nearly $70 million. The trading application Moonshot noted that buying volumes have decreased dramatically, dropping from an average of over $6 million to just above $1 million in a 24-hour span.
Despite the current downturn, some traders remain optimistic about future pro-crypto policies under the Trump administration. Analysts from QCP Capital suggest that the launch of the TRUMP token on the Solana blockchain could signal a potential endorsement of the chain, which may lead to quicker approval for a Solana ETF. This optimism is fueled by expectations of institutional interest as investors await clear pro-crypto policies from the administration.
The recent plunge in the TRUMP and MELANIA tokens highlights the unpredictable nature of cryptocurrency investments. As the market reacts to political developments, traders are advised to stay vigilant and consider the potential implications of future policies on their investments.
