Donald Trump’s meme coin, $TRUMP, which launched on January 17 and skyrocketed to a $15 billion market cap by his inauguration, has now plunged to just $2.48 billion. The staggering $12 billion loss comes amid a broader crypto market downturn, leaving investors reeling.
Crypto Market Struggles Intensify
The decline of $TRUMP coincides with a rough period for the entire cryptocurrency market. Bitcoin (BTC) has dropped 20% since Trump took office, currently trading at $91,018, while Ethereum (ETH) has plummeted to a 16-month low of $2,287. These losses highlight growing uncertainty in the digital asset space.
Investor Expectations vs. Reality
Many investors bought into $TRUMP with the expectation that Trump’s presidency would usher in pro-crypto policies, possibly including a U.S. Bitcoin reserve. However, his silence on the matter has fueled disappointment. Kathleen Brooks of XTB pointed out that initial optimism surrounding Trump’s stance on crypto was a key driver behind $TRUMP’s price surge. With no concrete policy announcements, investor sentiment has soured, prompting a mass sell-off.
Trade Tensions and Security Concerns
Beyond Trump’s inaction on crypto, escalating trade tensions have further strained the market. The President’s confirmation of upcoming tariffs on Mexico, Canada, and China has led to increased uncertainty, causing investors to pull back from riskier assets like cryptocurrencies.
Additionally, a recent $1.5 billion hack at the Bybit exchange in Dubai has shaken market confidence. The FBI has attributed the attack to North Korea, heightening concerns over digital asset security. Susannah Streeter of Hargreaves Lansdown noted that these factors are collectively driving investors away from crypto, exacerbating $TRUMP’s collapse.
Trump’s meme coin is officially described as an “artwork” rather than an investment on its website, a distinction likely made to avoid regulatory scrutiny. By framing $TRUMP as a collectible rather than a security, Trump can sidestep strict financial regulations.
Also Read: XRP Gains U.S. Government Recognition as Part of Trump’s National Crypto Reserve
With the market’s nerves on edge and no clear pro-crypto policies from Trump, the future of $TRUMP remains uncertain. Investors will be closely watching for any signs of a policy shift that could revive confidence in the coin.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
