Investing.com– Bitcoin fell on Monday, reversing a rally over the weekend as increased market volatility following two memecoin launches by President-elect Donald Trump dented sentiment in crypto markets.
Traders were also on edge ahead of Trump’s inauguration later Monday, with the president-elect expected to sign a series of executive orders outlining policy changes. But what those changes would entail remained unclear, though Trump has promised more crypto-friendly policies during his tenure.
it was down 2.5% at $102,481.9 by 00:28 ET (05:28 GMT).
Trump, Melania. The volatility of memecoins reduces the appetite for cryptocurrencies
Crypto markets initially welcomed the launch of Trump’s memecoin, $TRUMP, which has gained momentum since Friday’s launch. The token was seen to gain over 7000% within hours of its launch, gaining a market cap of over $14 billion.
However, the token then underwent massive profit-taking, falling sharply from its highs over the weekend.
Trump also drew criticism for launching a new memecoin themed around future first lady Melania Trump, $MELANIA, with crypto traders expressing concern over the ethical implications of Trump exploiting his political status to turn speculative markets in his favor.
The launch of $TRUMP, of which the president-elect owns a significant number of tokens, has greatly increased his personal wealth, at least on paper.
Trump’s politics in focus as the inauguration approaches
Trump is scheduled to take office at 12:00 ET (17:00 GMT) on Monday.
The president-elect has promised to roll back crypto-friendly regulations during his second term and has vowed to make America the “crypto capital” of the world.
Although Trump has nominated several pro-crypto candidates for key regulatory positions, markets have been uncertain about what policies he will outline, given that some of his more ambitious promises, such as a strategic Bitcoin reserve, may require congressional approval.
Uncertainty about the impact of Trump’s policies on the broader economy, especially given his hard-line stance on immigration and trade, has dampened risk appetite.
Crypto Price Today: Altcoins Follow Bitcoin’s Losses
Broader cryptocurrency prices followed losses in Bitcoin, as they also lost steam from gains over the weekend.
The world’s No. 2 cryptocurrency fell 0.3% to $3,287.29, while it fell 3.4% to $3.0939.
and fell between 5% and 11%, while among meme tokens it lost 7.5%.
