The cryptocurrency market has shown signs of heightened volatility following Donald Trump’s return to the U.S. presidency, with Bitcoin prices surging and then falling as Trump delivered his inauguration speech.
In the hours before Trump took the oath of office, Bitcoin (BTC-USD) reached an all-time high, briefly crossing $109,000. However, the price quickly dropped below $101,000 after Trump’s address, signaling the market’s sensitivity to the political landscape surrounding the new administration.
Trump’s inauguration speech, which offered no immediate policy details, contained promises aimed at crypto supporters. He vowed to position the United States as the “crypto capital of the planet,” though specific actions to support the industry were not announced. Industry insiders, however, expect at least one crypto-focused executive order later today.
David Sacks, Trump’s appointed AI and crypto czar, spoke to industry leaders at a black-tie gala in Washington, D.C., on Friday evening, asserting that the “reign of terror against crypto is over” and that America’s “crypto innovation” is just beginning.
The launch of Trump-themed meme coins has further stirred the crypto community. Last Friday, Trump’s team debuted two meme coins—TRUMP and MELANIA—on the Solana (SOL) blockchain. The coins, named after the 47th president and first lady, began trading over the weekend. A disclosure on the meme coin’s website revealed that Fight Fight Fight LLC and CIC Digital LLC, affiliates of The Trump Organization, hold 80% of the total supply, subject to a three-year unlocking schedule.
The release of these coins caught some in the crypto world off guard. One former Trump administration official, now an outspoken critic of the president, voiced concerns on social media, calling the coin “the most dangerous thing.” According to this official, the coin effectively allows “anyone in the world” to deposit money into the U.S. president’s account with just a few clicks, suggesting that favors—whether geopolitical, corporate, or personal—are now available for sale.
Despite the controversy, the meme coins quickly gained traction, with major crypto exchanges—including Coinbase Global (COIN), Robinhood (HOOD), and Binance—announcing plans to list the tokens on their platforms. The TRUMP coin’s success was reflected in the Solana blockchain’s performance, which saw over $50 billion in trading volume over the last 48 hours, surpassing all other blockchains during that period, according to Bernstein data.
At of now, the TRUMP coin boasts a market capitalization of over $10 billion, making it one of the top 20 largest cryptocurrencies by total market cap.
“Trump’s coin signals the beginning of a new, chaotic era in crypto,” said Gautam Chhugani, an analyst at Bernstein, in a Monday note. Chhugani believes the launch is indicative of a significant shift in the crypto regulatory landscape and suggests that investors should focus on the more valuable segments of the ecosystem.
However, not everyone shares the same optimism. Dan Hughes, chief technology officer at the crypto platform Radix, called Trump’s second term an “unprecedented moment” for crypto markets. While Hughes acknowledged the potential for long-term industry growth, he cautioned that investors might face short-term disappointment if expected executive orders fail to materialize or lack substantial impact. “If these orders do not come as soon as anticipated or are underwhelming, the market will likely react poorly,” Hughes warned.
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