Donald Trump’s cryptocurrency, the Solana-based memecoin $TRUMP (Official Trump), has fallen from its ATH (All-Time High) of $75.35 to $11.15, witnessing 12.5 billion dollars of outflows. This month alone, hodlers lost around $3 billion. Thousands of passionate investors who purchased the token after the president’s tweet are in crisis.
Market scholars attribute the fall to multiple reasons, including the identity of $TRUMP as a memecoin and the recent unexpected fluctuations in the whole crypto market. Another major argument is that Donald Trump’s Tariff threat affected the entire market, eventually reaching $TRUMP, which itself is a contradiction.
Why is $TRUMP Bleeding?
Launched to the public on January 17th, the $TRUMP token became viral after Donald Trump officially endorsed the token via X (Twitter) through a January 18th tweet, two days before his inauguration. The token instantly became a trend, reaching an ATH of $75.35 on January 19th, 2025. Despite the backing by the President of the United States of America, the token started a downward spiral movement from its ATH. Let’s get into the details of what contributed to the fall.
- Memecoin Identity: The memecoin niche has witnessed a significant downfall this week, with Dogecoin falling 27%, Shiba Inu 16%, and PEPE 25%. $TRUMP has lost 33% of the market cap this week. As a memecoin, experienced traders must have known that $TRUMP would witness extreme volatility soon after its release.
- Trump Tariffs: Trump’s proposal of 25% tariffs on goods imported from Canada, Mexico, and the European Union has sparked discussions and opposition from global communities. This affected the stocks and crypto, mainly the Trump-driven memecoins such as the Official TRUMP. Also, various U.S. investors who are in FUD regarding the ambiguities in policies chose to cut the volatility risks by detaching from crypto.
- Hacks & Rug Pulls: Recent events like the Libra scam and the Bybit hack also contributed to the decline of $TRUMP. The Bybit hack, the biggest heist to date, witnessed perpetrators stealing 1.5 billion dollars worth of digital assets from a cold wallet. Along with this, the Libra scam, a rug pull of a project backed by Argentine President Javier Gerardo Milei, ignited skepticism toward celebrity-backed memecoins.
- External Economic Conditions: The stock market crash, the delay in the crypto ETF approval by the U.S., and the global trade war contributed to the decline of crypto. Negative news that landed one after another without any interval forced tokens such as $TRUMP to continue its downward spiral.
Where is $TRUMP Headed To? HODL or Sell?
As a memecoin, we need either a strong narrative or at least a tweet from the President for the $TRUMP to surge. Since various Trump-related events are approaching during his term, we can see occasional pumps and dumps on the token. However, price prediction experts are critical about its long-term potential as a valuable asset.
How Are $Melania & Bitcoin Doing?
Along with $TRUMP, Donald Trump’s wife, the First Lady, Melania Trump, also created a Solana-based meme coin called $MELANIA. This memecoin witnessed an incredible downfall, reaching its all-time low (ATL) today. From an ATH of $13.73, which it achieved on January 20th, 2025, the token went to the lowest point of $0.7986, losing around 95% of the market cap.
All this bleeding was driven by the downtrend in the frontrunner Bitcoin’s price. Bitcoin has fallen to $79K, 27% down from the all-time high of $109K it achieved a month ago. Today alone, the coin witnessed a 7.8% outflow from its market cap.
Final Thoughts: Will the Crypto Market Recover?
There are polarising views regarding the recovery of the crypto market. While some experts believe that BTC will rebound from $79K to new heights like an average ATH of $120K and a maximum ATH of $150K in this cycle, others expect it to reach the support level of $ 50K. If you plan to invest, try to do extensive research on the market conditions before finalizing your entry and exit points.
Finally, be cautious while investing in memecoins such as $TRUMP and $MELANIA. These are prone to extreme volatility in the charts, so engage with them only after doing your own thorough research.
