Crypto Market Slips as Trump Inauguration Optimism Fades

The cryptocurrency market took a step back on Tuesday as initial bullish sentiment following President Donald Trump’s inauguration began to cool. Bitcoin, the world’s largest digital asset, dropped 5% to $102,589, while altcoins such as ether and XRP fell 3% and 5%, respectively.

A notable casualty of the market downturn was the TRUMP token, a digital asset launched last week that represents the new U.S. president. The token plummeted by as much as 22% in 24 hours, according to data from CoinGecko. Meanwhile, a meme token released on Sunday by First Lady Melania Trump crashed 58% within a day.

Many crypto investors had high hopes for Trump’s presidency, expecting policies that would favor digital assets. The president has previously voiced support for cryptocurrencies, promising a regulatory framework that could foster industry growth and even hinting at the possibility of a federal Bitcoin reserve.

However, Monday’s inauguration did not bring any specific policy announcements regarding crypto, leading to a cooldown in market excitement. Investors who had bet on an immediate boost to the sector appeared to reassess their positions, triggering a wave of sell-offs. But investors should also understand that this is day one and President Trump has become a “Promises Given, Promises Kept” US President, so patience is the word of the day.

While Bitcoin’s recent decline is noteworthy, the crypto market is no stranger to volatility. The digital asset has swung by thousands of dollars in a single day in the past, and altcoins—smaller cryptocurrencies that tend to be more speculative—are even more susceptible to sharp price movements.

Some investors have instead shifted focus toward more established blockchain ecosystems that offer real-world utility. Solana and Pecu Novus, for example, have remained relatively steady or even gained traction due to their growing ecosystems.

“There’s a stark difference between investing in layer-1 blockchains with strong fundamentals versus chasing hype-driven meme tokens,” said a leading industry analyst. “The latter can skyrocket overnight but just as easily collapse in what’s known as a ‘rug pull.’ If investors want to work smarter in the crypto market, they need to prioritize utility over speculation.”

As the crypto market continues to adjust to the new administration, investors will be closely watching for any concrete policy moves from Trump that could shape the future of digital assets. Until then, the volatility that defines the sector is likely to persist.

Thomas Lin
UCW Newswire