Emily Walker
Bitcoin (BTC), the top cryptocurrency, has achieved a new record high, exceeding $109,000 on Monday, with excitement growing over the upcoming inauguration of President Donald Trump.
Trump Family’s Memecoins Spark Market Activity
According to CNBC, this spike in Bitcoin’s value is linked to the recent introduction of two memecoins by the Trump family. This weekend, Trump launched the “Official Trump” (TRUMP) memecoin, which surged to a market capitalization of $10.6 billion, marking an impressive increase of more than 659% since its launch on Friday.
Nonetheless, the TRUMP memecoin has seen some fluctuations, dropping roughly 27% from its peak value of about $73 per coin on Monday.
Melania Trump also entered the memecoin space with her coin called “Melania,” which began trading on Sunday evening. It has achieved a market cap of $1.3 billion, showing a 14% rise since its initiation.
The launch of the Melania memecoin notably influenced the TRUMP coin’s value, with TRUMP’s market cap nearly halving and its ranking dropping from the 12th to the 22nd largest cryptocurrency.
Despite the risks associated with investing in memecoins, the report indicates that these new offerings have generated renewed optimism among traders, suggesting a potential supportive approach from the incoming administration towards cryptocurrency.
Market strategist Joel Kruger from LMAX noted that these developments illustrate President Trump’s dedication to the crypto market, affirming that Americans should have the freedom to engage with emerging asset classes.
Kruger remarked, “This move demonstrates Trump’s acceptance of crypto and the belief that Americans should be free to participate in new asset classes.”
He further explained that endorsing memecoins—often regarded as a highly speculative part of the cryptocurrency landscape—sends a strong supportive message for the industry.
Economist Noelle Acheson, author of the “Crypto is Macro Now” newsletter, echoed this perspective by describing the memecoin launches as a progressive step, indicative of Trump’s willingness to explore innovative market opportunities.
Positive Outlook for Bitcoin: Analysts Eye $130,000 Target
The recent surge in Bitcoin began accumulating momentum last week amid rumors that Trump might issue an executive order prioritizing cryptocurrency early in his presidency.
Gracy Chen, CEO of the crypto exchange Bitget, highlighted that this optimism is significantly affecting Bitcoin’s price movement. “Speculation about cryptocurrency being declared a national interest during the inauguration is positively impacting Bitcoin’s pricing,” Chen stated.
However, Chen warned that the announcement of Trump family tokens might divert some investments that could have further propelled Bitcoin’s growth.
Looking forward, analysts are generally optimistic about Bitcoin’s future. With the price surpassing the $109,000 mark, experts, including Kruger, suggest it could continue to rise, with $130,000 being a potential target.
As of now, BTC is maintaining around $107,730 after a modest 0.5% decrease in the last trading hours prior to Trump’s inauguration.
Image credit: DALL-E, chart credit: TradingView.com