Donald Trump's Launch of TRUMP Meme Coin Sends Crypto Market into Frenzy, Bitcoin Surges Past $100,000

Donald Trump's Launch of TRUMP Meme Coin Sends Crypto Market into Frenzy, Bitcoin Surges Past $100,000On January 18th, US President-elect Trump announced the launch of his personal meme coin, TRUMP, via social media, triggering a dramatic upheaval in the cryptocurrency market. His post read: "It's time to celebrate our victory! Join my 'TrumpCommunity'

Donald Trump's Launch of TRUMP Meme Coin Sends Crypto Market into Frenzy, Bitcoin Surges Past $100,000

On January 18th, US President-elect Trump announced the launch of his personal meme coin, TRUMP, via social media, triggering a dramatic upheaval in the cryptocurrency market. His post read: "It's time to celebrate our victory! Join my 'TrumpCommunity'. Get your TRUMP token. Have fun!" Initial market skepticism regarding account hacking was quickly dispelled by a subsequent identical post from Trump's verified X account.

The market reacted explosively to the TRUMP token's launch. After Huobi listed TRUMP at 5:40 PM, its price skyrocketed by 1250%, reaching $21 USDT. CoinGecko data showed TRUMP's market capitalization rapidly ballooning to $4 billion, placing it fourth among meme coins, trailing only DOGE, SHIB, and PEPE. It's crucial to emphasize, however, that as a meme coin, TRUMP's price is extremely volatile, and speculative participation carries significant risk. Investors should exercise extreme caution.

The TRUMP coin's emergence wasn't an isolated event; it's closely tied to the broader recent volatility in the cryptocurrency market. Bitcoin's price also experienced a significant surge around the TRUMP launch, rising sharply from around $97,000 to over $105,000 before a slight correction, settling at a high of $104,916.8 (Source: Investing.com screenshot).

This market euphoria is closely linked to Trump's impending inauguration. With Trump set to be inaugurated on January 20th, the market anticipates a significant shift in US cryptocurrency policy. According to the Securities Times, Trump plans to issue an executive order elevating cryptocurrencies to a policy priority and granting industry insiders a voice within his administration. This order could be released as early as January 20th (Monday).

This highly anticipated executive order may include several key elements: elevating cryptocurrencies to a national strategic priority; potentially halting lawsuits involving cryptocurrencies; and considering the establishment of a national Bitcoin reserve. These policy expectations have positively influenced market sentiment, fueling the surge.

Zahid Ebootichal, founder of the crypto fund SplitCapital, commented, "The market is currently digesting Trump's inauguration and his optimistic stance on cryptocurrencies." Trump's previous stance on crypto has been cautiously skeptical. However, this upcoming executive order signals a potential major policy shift, injecting a significant dose of confidence into the market.

Foreign media reports corroborate this policy shift. Reports indicate his planned executive order will prioritize cryptocurrencies and give industry insiders a voice in his administration. This further strengthens market optimism regarding the future of cryptocurrencies.

Looking ahead, many Wall Street institutions hold an optimistic outlook for the cryptocurrency market, particularly Bitcoin. Some analysts predict more robust Bitcoin growth in 2025. Alex Thorn, head of research at Galaxy Digital, anticipates Bitcoin surpassing $150,000 in the first half of the year and reaching $185,000 by Q4. Elitsa Taskova, Chief Product Officer at Nexo, is even more bullish, predicting Bitcoin will more than double within a year, reaching $250,000. From a longer-term perspective, she believes the entire crypto market capitalization will eventually surpass that of gold.

However, not all perspectives are rosy. Top Wall Street technical strategist Katie Stockton warned that Bitcoin's recent upward momentum has weakened, potentially leading to a weeks-long sell-off, eventually finding support around $84,500. She added that if the price continues to fall, the next support level might be around $73,800. Her view serves as a cautionary note, reminding investors of potential risks.

Trump's launch of the TRUMP meme coin and his planned pro-crypto executive order have significantly boosted short-term market sentiment, driving substantial price increases in cryptocurrencies like Bitcoin. However, investors must remain aware of the extreme volatility and high risk inherent in the cryptocurrency market. TRUMP, as a meme coin, is exceptionally volatile, and investment participation requires extreme caution. Any investment decision should be based on individual risk tolerance, thorough market research, and a comprehensive risk assessment. Avoid blindly following trends or placing undue faith in market predictions and analyses. All investments carry the potential for loss, and investors should be prepared for such outcomes.

In summary, Trump's policy shift and the launch of the TRUMP coin have significantly impacted the cryptocurrency market, resulting in marked sentiment swings. While many institutions hold an optimistic outlook, market risks remain, and investors must maintain rationality and make prudent decisions. Remember, all investment decisions should be based on individual risk tolerance; avoid impulsive buying and selling.

The recent extreme volatility in the cryptocurrency market also indirectly reflects the complexity and uncertainty of the global macroeconomic environment. Geopolitical factors, inflationary pressures, and global economic slowdown can all impact the cryptocurrency market. Investors should therefore monitor changes in these macroeconomic factors and incorporate them into their investment decisions.

Furthermore, regulatory policy changes have a significant impact on the cryptocurrency market. The intensity and direction of government regulation of cryptocurrencies will influence price trends. Investors need to closely monitor relevant regulatory policy developments and adjust their investment strategies accordingly.

While some analysts are optimistic about future Bitcoin prices, predicting rises to hundreds of thousands of dollars or more, these predictions are uncertain. Market conditions are constantly changing, and various factors can affect price trends. Investors should not blindly trust these predictions but should develop reasonable investment plans based on their own circumstances and risk tolerance.

Daily Economic News, compiled from Yicai Global and Securities Times.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Any actions taken based on this information are at your own risk.