Crypto Markets React to Trump Inauguration, Memecoins and Bitcoin See Major Drops
Crypto markets were rocked on Monday during Donald Trump’s inauguration as the anticipated shift in policy for digital assets fell short. Trump’s inaugural speech left out any mention of cryptocurrency, leading to widespread disappointment in the market.
The CoinDesk 20 Index, a broad measure of the top 20 cryptocurrencies, dropped by more than 5% during the ceremony. Bitcoin (BTC), which had been trading above $106,000 before the speech, dipped to $101,000 before stabilizing at around $103,000. Solana (SOL), which had been central to the weekend’s speculative frenzy surrounding Trump-related memecoins, took a heavy hit, losing nearly 10% from its recent high.
Trump Memecoins Experience Significant Losses
The TRUMP memecoin, which launched on Solana just days before the inauguration, took a 30% dive from $50 during the speech. Although it recovered slightly, it remained down by about 20% from its peak. MELANIA, the token named after the First Lady and launched the day after TRUMP, saw an even more drastic decline, plummeting by 46% before trimming some of the losses.
Market Liquidations Exceed $700M
The volatility triggered a wave of liquidations in leveraged positions across the crypto markets. According to CoinGlass, more than $700 million worth of crypto derivatives were liquidated on exchanges throughout the day. Around $500 million of these liquidations were from long positions, which had been betting on rising prices.
Including the overnight selloff before the inauguration, the total liquidations over the past 24 hours exceeded $1.2 billion, marking the largest liquidation event of the year.
Industry Faces Growing Backlash
Crypto advocates had hoped that Trump’s presidency would lead to friendlier policies toward digital assets, especially following years of regulatory uncertainty. However, the lack of crypto-focused announcements during his speech, combined with the controversial launch of the Trump-affiliated memecoins, led to a speculative trading frenzy that sparked criticism.
Nic Carter, co-founder of Castle Island Ventures, voiced his discontent, calling the launch of the memecoins “utterly absurd” and accusing Trump’s team of “undermining the credibility of the space.”
Additionally, Maxine Waters, the top Democrat on the House Financial Services Committee, condemned the move, stating, “This meme coin reflects the worst aspects of the crypto space and why many regulators and policymakers have had concerns. These actions by President Trump will only further damage the legitimacy of the crypto industry, which has been fighting for fairness and recognition alongside traditional financial institutions.”
