The inauguration of Donald Trump as US president marked a sharp decline in the value of family-themed meme coins associated with his name. According to CoinMarketCap data, the market capitalization of Melania Trump’s cryptocurrency, $MELANIA, plummeted from $2 billion to $790 million. Meanwhile, the $TRUMP coin saw its gains slashed in half, settling at approximately $6.86 billion.
The downturn came after both coins had surged the previous day, fueled by the announcement of Melania Trump’s entry into the cryptocurrency space with her rival coin, $MELANIA. However, by the morning of January 21 (IST), both tokens had nosedived into the red, reflecting the volatile nature of the meme coin market. These figures were reported at 8:15 am.
Meanwhile, according to experts, Bitcoin could soar to $150,000 by the end of 2025, fueled by increased institutional adoption and support for cryptocurrencies from U.S. President-elect Donald Trump.
Despite this optimistic outlook, analysts caution that Bitcoin must consistently stay above $100,000 for several months to establish a strong support level.
Previously, Bitcoin breached the $100,000 mark but later dipped below this critical psychological threshold. The cryptocurrency’s price surged again after Trump launched his own cryptocurrency and announced plans for an executive order prioritizing crypto development at the national level.
“Cryptocurrencies are witnessing significant adoption by institutional and retail investors as a hedge against inflation and financial risks, similar to gold,” noted Konstantinos Chrysikos, director of customer relations at Kudo Trade.
Chrysikos further suggested that Trump’s return to power could positively impact the crypto market, which tends to experience cyclical shifts. He predicted Bitcoin could stabilize between $110,000 and $120,000 before potentially reaching $150,000 by late 2025, describing this as a “conservative outlook” while acknowledging the unpredictable nature of the crypto market.
Broader Market Trends and Risks
Farah Mourad, senior market analyst at Equiti Group, pointed to the “positive impact” of Trump’s crypto-friendly stance and the increasing volume of international cryptocurrency transactions, particularly between China and other nations.
While she does not anticipate a correction in Bitcoin’s value, Mourad stated that if one occurred, strong support could be found around $72,000 to $75,000. She highlighted that Bitcoin’s long-term momentum depends on maintaining a position above $100,000 for several months, adding that diversifying investments into Ethereum and Ripple would be a prudent strategy.
Caution Amid Optimism
Wael Makarem, another market expert, attributed the recent rise in cryptocurrency prices to a “decrease in active supply.” He warned against “overly optimistic expectations” for the crypto market following Trump’s return to office, citing potential global tensions with the EU and China that could create instability and increase risk aversion.
