The cryptocurrency market witnessed a whirlwind of activity on Monday as Bitcoin (BTC) briefly dipped below the $100,000 mark, marking a 4.5% decline in 24 hours. Altcoins like Ethereum (ETH), XRP, Solana (SOL), and Binance Coin (BNB) faced even steeper losses, with Cardano (ADA) and Dogecoin (DOGE) plummeting over 10%.
Amid Bitcoin’s retracement, the memecoin market stole the spotlight. TRUMP, the memecoin linked to President-elect Donald Trump, tanked 30% to $49 following the launch of Melania Trump’s memecoin, MELANIA. The First Lady announced the token’s debut on X (formerly Twitter), describing it as a fungible cryptocurrency built on the Solana blockchain.
MELANIA’s launch triggered a staggering 24,000% rally, reaching an all-time high of $13. The surge reportedly drained liquidity from TRUMP, which had been the most-traded digital asset on Binance over the weekend.
Market Reactions and Expert Insights
The frenzy surrounding TRUMP and MELANIA has sparked debates about the crypto market’s current phase. Some analysts view the memecoin mania as a sign of the “FOMO phase” in the bull market, warning of a potential Bitcoin price correction.
However, others, like Jeff Dorman, Chief Investment Officer at Arca, see the TRUMP token as a groundbreaking development. Dorman believes the token’s success eliminates long-standing regulatory concerns, paving the way for broader adoption of crypto as a tool for capital formation and customer engagement.
What’s Next for Bitcoin and Memecoins?
As the crypto community braces for further volatility, all eyes are on the upcoming inauguration. Speculation is rife that President-elect Trump may sign an executive order to establish a strategic Bitcoin reserve, potentially reshaping the cryptocurrency landscape.
For now, the market remains divided on whether memecoins like TRUMP and MELANIA are a passing trend or a sign of crypto’s evolving role in mainstream finance.
