The post What Does It Mean for Donald Trump and Melania Trump to Issue Their Own Memecoin? Good or Bad for Bitcoin? appeared on BitcoinEthereumNews.com.

Bitcoin (BTC) rose to an all-time high of $109,350.72 earlier today before falling sharply during a volatile trading day coinciding with the inauguration of President Donald Trump. While price action mirrors a classic “buy the rumor, sell the news” scenario, optimism was fueled last week by speculation that Trump could prioritize cryptocurrencies early in his administration. Rumors suggested potential announcements of a crypto advisory council and even the establishment of a U.S. Bitcoin reserve, adding to the bullish sentiment. In addition to the weekend action, Trump launched the “Official Trump” memecoin, which quickly reached a market value of $10 billion, according to CoinGecko. First Lady Melania Trump also launched her own “Melania” memecoin, which reached a trading volume of $7.2 billion the other day. Gracy Chen, CEO of crypto exchange Bitget, said the rally in Bitcoin was driven by policy speculation rather than the launch of memecoins. “Without the launch of Trump family tokens, the price of Bitcoin would have increased more. Instead, capital flowed into new coins, limiting overall growth,” he said. Despite their speculative nature, Trump memecoins appear to have reinforced optimism about the new administration’s stance on cryptocurrencies. Joel Kruger, market strategist at LMAX, suggested that the launch of these tokens signals an open-minded approach to crypto. “Approving memecoins, the wildest crypto assets, is a way for the administration to show how supportive it can be of crypto adoption and position the U.S. as a leader in this space,” Kruger said. Economist and author of the Crypto is Macro Now newsletter Noelle Acheson echoed this view, calling the memecoin launches a “net positive effect” and a sign that Trump supports “new ideas and new markets.” Bitcoin’s rally cooled on Monday, but analysts see more upside potential. Kruger noted that the new high opens the door for a…

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Filed under: News - @ January 21, 2025 10:19 am