The market’s leading cryptocurrency, Bitcoin (BTC), has reached a new all-time high, soaring past the $109,000 mark on Monday as anticipation builds around the inauguration of incoming President Donald Trump.
Trump Family’s Memecoins Create Market Stir
According to CNBC, this surge can be partly attributed to the recent launch of two memecoins by the Trump family. Over the weekend, Trump unveiled the “Official Trump” (TRUMP) memecoin, which skyrocketed to a market capitalization of $10.6 billion, reflecting an astonishing increase of over 659% since its Friday debut.
However, the TRUMP memecoin has experienced some volatility, dropping approximately 27% from its peak price of around $73 per coin on Monday.
Adding to the excitement, Melania Trump launched her own memecoin, aptly named “Melania,” which began trading Sunday evening. The memecoin has managed to establish a $1.3 billion market cap and has seen a 14% increase since its launch.
The introduction of the Melania memecoin has significantly impacted the value of the official Trump coin. At one point, TRUMP nearly halved its market cap, dropping from its previous position as the 12th largest cryptocurrency to now ranking 22nd in terms of market capitalization.
Despite the inherent risks associated with memecoins, the report observes that these launches have instilled a renewed sense of optimism among traders, suggesting that the incoming administration may adopt a favorable stance towards cryptocurrency.
Joel Kruger, a market strategist at LMAX, noted that this initiative signals President Trump’s commitment to the crypto space, emphasizing that Americans should have the freedom to explore emerging asset classes.
“The move highlights President Trump’s embrace of crypto and belief that Americans should have the freedom to operate in the emerging asset class,” Kruger stated.
The expert further elaborated that endorsing memecoins—often viewed as the most speculative segment of the cryptocurrency market—sends a powerful message of support for the industry.
Echoing this sentiment, economist Noelle Acheson, author of the “Crypto is Macro Now” newsletter, described the memecoin launches as a positive development, reflecting Trump’s openness to new ideas and markets.
Optimism Surrounds Bitcoin: Analysts Predict $130,000 Target
Bitcoin’s recent rally began gaining momentum last week amid speculation that Trump might announce an executive order prioritizing cryptocurrency early in his presidency.
Gracy Chen, CEO of the crypto exchange Bitget, pointed out that this optimism is significantly influencing Bitcoin’s price trajectory. “Rumors that cryptocurrency may be declared a national interest by the United States during the inauguration are having a positive effect on the price of Bitcoin,” Chen explained.
Chen cautioned, however, that the launch of the Trump family tokens has redirected some capital that could have fueled Bitcoin’s growth further.
Looking ahead, analysts remain optimistic about Bitcoin’s potential. With its price breaking the $109,000 barrier, some experts, including Kruger, speculate that it could extend even further, with $130,000 as a possible target.
At the time of writing, BTC is consolidating at around $107,730 after a slight 0.5% decline in the last few hours of trading prior to Trump’s inauguration.
Featured image from DALL-E, chart from TradingView.com
