- TRUMP, after igniting a storm in the market, is now being viewed as a manipulation stunt.
- With billions lost, the question remains: where does this leave Bitcoin?
There’s no doubt, Trump’s memecoin [TRUMP] launch has left the market divided. On one side, supporters hail it as a “masterstroke” that will fuel Trump’s pro-crypto image.
On the other, critics view it as pure “manipulation” – another hype-driven cash grab.
But after 100 executive orders, his crypto-friendly stance has flipped to “no crypto.” Now, with the market in turmoil and Bitcoin caught in the crossfire, what’s next for the crypto market as Q1 unfolds?
TRUMP under scrutiny
TRUMP’s tokenomics is simple but powerful. Over the next three years, one billion TRUMP tokens will be unlocked.
Right now, 20% are circulating, and 80% are controlled by Trump’s Organization affiliates. At its press time price of $40, these tokens give Trump a staggering $6.4 billion valuation.
However, TRUMP is now 48% down from its all-time high, which it hit within 48 hours of launch – a moment that briefly inflated Trump’s token-based net worth to over $12 billion.
Supporters call it genius. Skeptics? Manipulation at its finest.
And Bitcoin’s [BTC] 5% drop? Not a coincidence. As investors flocked to TRUMP, Bitcoin lost liquidity, with reserves on exchanges soaring to 2.35 million in just two days.
Source: CryptoQuant
But now, things are starting to shift.
Despite the buzz around Trump’s return to the White House, his namesake memecoin has fallen sharply, losing 30% of its value in just 24 hours and dropping its market cap to $7 billion – a far cry from its early “hype.”
So, what’s really happening? Are investors backing off, holding their breath for Trump’s next crypto move, or are they starting to lose faith in his promises?
Caution over conviction?
The crypto market is headed into a storm of extreme volatility. Just look at the TRUMP memecoin fiasco – its failure to replicate the initial hype is proof of how unpredictable things are.
Bitcoin, which recently hit a record high of $109K, quickly took a 5% dive, showing that investor confidence is slipping fast. With risk appetite shrinking, the market is on edge.
And Trump’s “no crypto” stance, buried within his 100 executive orders, has thrown more uncertainty into the mix.
Source: IntoTheBlock
Read Bitcoin’s [BTC] Price Prediction 2024-25
If TRUMP continues to fall short, Bitcoin could see a serious sell-off. With $372 billion in BTC on the line, the next few weeks could decide if we’re in for a market crash or if there’s hope for recovery.
Brace yourself—it’s about to get bumpy.
