Bitcoin’s price has dropped to $102,000 amid volatility surrounding a Trump-related memecoin, which has negatively impacted market sentiment.

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  • Bitcoin’s price has dropped to $102,000 amid volatility surrounding a Trump-related memecoin, which has negatively impacted market sentiment.

Bitcoin dropped on Monday, reversing its weekend rally, as increased market volatility followed the launch of two memecoins tied to President-elect Donald Trump, negatively affecting sentiment in the crypto markets.

Traders were also cautious ahead of Trump’s inauguration later that day, with expectations of a series of executive orders outlining policy changes. While the details of these policies remain unclear, Trump has pledged to introduce more crypto-friendly measures during his presidency.

By 00:28 ET (05:28 GMT), Bitcoin had fallen 2.5%, settling at $102,481.90.

Trump and Melania memecoin volatility impacts crypto sentiment Crypto markets initially responded positively to the launch of Trump’s $TRUMP memecoin, which saw an explosive rise of over 7000% within hours of its release on Friday, reaching a market capitalization exceeding $14 billion. However, the token soon experienced heavy profit-taking, causing it to fall from its weekend highs.

Trump also faced criticism for launching another memecoin centered around his soon-to-be First Lady, Melania Trump, named $MELANIA. This move raised concerns among crypto traders about the ethical implications of using his political status to influence speculative markets.

The launch of $TRUMP, in which Trump holds a substantial stake, significantly boosted his personal wealth, at least on paper.

Focus on Trump’s policies as inauguration approaches Trump is set to officially take office at 12:00 ET (17:00 GMT) on Monday. He has promised to introduce crypto-friendly regulations during his second term, with a vision to make the U.S. the “crypto capital” of the world.
Although Trump nominated several pro-crypto candidates for key regulatory roles, markets remained uncertain about the specific policies he would implement, especially since some of his more ambitious proposals, like a Bitcoin Strategic Reserve, may require Congressional approval.

Concerns about the potential effects of Trump’s policies on the broader economy, coupled with his tough positions on immigration and trade, kept risk appetite subdued.

Crypto prices today: Altcoins mirror Bitcoin’s decline The broader cryptocurrency market followed Bitcoin’s downward trend, with altcoins also losing ground after their weekend rally.

Ether, the second-largest cryptocurrency, dropped 0.3% to $3,287.29, while XRP fell 3.4% to $3.0939.

Solana, Cardano, and Polygon saw declines ranging from 5% to 11%, and among meme tokens, Dogecoin slipped by 7.5%.

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