Trump Couple's Entry Shakes Up Cryptocurrency Market: Bitcoin's Rollercoaster Ride, 400,000 Liquidations, and a Global Meme Coin Frenzy

Trump Couple's Entry Shakes Up Cryptocurrency Market: Bitcoin's Rollercoaster Ride, 400,000 Liquidations, and a Global Meme Coin FrenzyThe volatility of the cryptocurrency market once again stunned observers. Recently, Bitcoin experienced a rollercoaster ride, initially breaking below the crucial psychological level of $100,000 per coin, hitting a low of $99,501 before sharply rebounding to a record high of $108,837, representing a daily surge exceeding 3

Trump Couple's Entry Shakes Up Cryptocurrency Market: Bitcoin's Rollercoaster Ride, 400,000 Liquidations, and a Global Meme Coin Frenzy

The volatility of the cryptocurrency market once again stunned observers. Recently, Bitcoin experienced a rollercoaster ride, initially breaking below the crucial psychological level of $100,000 per coin, hitting a low of $99,501 before sharply rebounding to a record high of $108,837, representing a daily surge exceeding 3.3%. Simultaneously, other cryptocurrencies underwent intense fluctuations, with Dogecoin falling over 10% at one point and Ethereum dropping by as much as 5%. Coinglass data revealed that over the past 24 hours, a total of 400,200 users were liquidated, amounting to $1.17 billion in losses, with long positions accounting for $910 million. This dramatic volatility undoubtedly inflicted significant losses on numerous investors.

Previously, the cryptocurrency market had shown strong performance, with its total market capitalization reaching nearly $4 trillion, and Bitcoin experiencing a year-to-date increase of 120.88%, surpassing $80,000, $90,000, and $100,000 within a month of Trump's election victory. However, this seemingly flourishing landscape was disrupted by the entry of the Trump couple, triggering intense market turmoil.

On January 18th, Trump announced the launch of his personal meme coin, Trump Coin ($TRUMP), on his social media platform. The coin immediately caused a market sensation, opening at $0.1824 per coin and at one point nearing $80, a surge of approximately 40,000%. Within 48 hours, Trump Coin ranked among the top 20 cryptocurrencies, with its market capitalization briefly soaring to $15 billion. On-chain data indicated that traders had already profited $360 million from Trump Coin and started selling their holdings, reflecting the market's positive outlook on its activity and prospects.

However, Trump Coin's glory was short-lived. Melania Trump launched her own cryptocurrency, MelaniaCoin, last Sunday. Coinmarketcap data showed that on January 20th at 8 AM, MelaniaCoin was trading at $0.1261, having skyrocketed 2160.31% since its launch, reaching a market cap of $5.71 million. MelaniaCoin's emergence significantly impacted Trump Coin, causing its market capitalization to rapidly fall below $10 billion and its price to plummet from its peak to the current $45.47. Market observation agency TheKobeissiLetter noted that within minutes of MelaniaCoin's launch, a massive wave of sell orders for Trump Coin flooded the market, resulting in a $7.5 billion evaporation of its market cap in just 10 minutes. Trump Coin's official website indicates that 200 million tokens are currently available for trading, with a further 800 million to be issued over the next three years. Industry insiders worry that the Trumps' tokens could siphon off a significant portion of market trading activity. Richard Galvin, co-founder of Sydney hedge fund DACM, stated that the influx of funds into Trump Coin had left most other cryptocurrencies, except SOL and some related assets, significantly subdued in trading. Coinbase and Binance, among other cryptocurrency exchanges, announced over the weekend that they would list Trump Coin on their platforms, and on January 20th, American online brokerage Robinhood also announced that Trump Coin would be tradable on its platform.

The Trumps' coin launch sparked widespread controversy. Some view it as a significant innovation in the cryptocurrency market, marking the dawn of the political meme coin era. They highlight that Trump Coin's launch on decentralized exchanges is positive for the crypto ecosystem and might even spur a "blockchain spring." This innovation provides investors with new options and opportunities, injecting fresh vitality into the market and enhancing its diversity.

Others, however, express concerns, suggesting that the Trumps may be exploiting their presidential positions for personal gain. The fact that two affiliates of the Trump Organization collectively hold 80% of TRUMP Coin fuels these anxieties. There are fears of potential conflicts of interest, undermining market fairness and potentially negatively impacting the overall health of the cryptocurrency market. A prominent X influencer, Mario Nawfal, even claimed that cryptocurrencies seem to be turning into a family business. Many industry experts caution that meme coins like "Trump Coin," primarily relying on internet hype for popularity, lack intrinsic value and carry extremely high investment risks.

Liu Ying, a researcher at the Renmin University of China's Chongyang Institute for Financial Studies, analyzed in an interview with Shenzhen TV's Zhi News that Trump recognized the financial market benefits of the "Trump trade" (rising US dollar index, rising US Treasury yields, etc.) and believed that issuing Trump Coin could capitalize on this. The volatility of the cryptocurrency market is partly due to tokens lacking any tangible asset backing, and Trump Coin is no exception. Its only potential underlying asset might be the presidential "halo." Therefore, Trump aims to leverage his presidency to attract more buyers for Trump Coin, thereby benefiting his group and family. Trump's new company's website also includes numerous disclaimers, restricting buyers from filing class-action lawsuits related to the token and warning buyers that "Trump's meme may be extremely volatile, and cryptocurrency price fluctuations may affect the price," clearly highlighting the high-risk nature of TRUMP Coin investment.

It's noteworthy that Trump's stance on cryptocurrencies has shifted. In 2019, he publicly expressed his dislike for Bitcoin and other cryptocurrencies on social media, considering them not to be currency, citing their high volatility and potential for facilitating illegal activities. However, last July, at a Bitcoin conference in Nashville, he stated that he was developing a plan to ensure the US became the global cryptocurrency capital and a Bitcoin superpower. He also planned to issue an executive order elevating cryptocurrencies to a policy priority and giving industry insiders a voice within the government. This executive order could have been released as early as Inauguration Day (January 20th), encompassing national strategic priorities, the potential suspension of cryptocurrency-related lawsuits, and the consideration of establishing a national Bitcoin reserve. According to data from analytics firm Arkham, the US government currently holds nearly $20 billion worth of Bitcoin. This move would strengthen the US government's recognition and support for Bitcoin and could potentially lead other countries to follow suit, driving Bitcoin's global adoption and use.

Despite Trump's seemingly ambitious and promising plans, the cryptocurrency market's violent swings serve as a reminder that Trump's supportive stance on cryptocurrencies is by no means a guarantee of price increases. The risks in the cryptocurrency market remain substantial, and investors should proceed with caution.

(Compiled by Wei Yinke, editor of Qilu Evening News and Qilu Yidian, from Jiemian News, Cailian Press, Hunan Daily, etc.)