Bitcoin reached a historic peak of $109,000 before experiencing a decline during Donald Trump's inauguration day, on Jan. 20, according to Coin Metrics, which offers comprehensive coverage of cryptocurrency market movements and their connection to political events.
The leading cryptocurrency later settled at $103,558.38, marking a more than 2% decrease in what appeared to be a classic "buy the rumor, sell the news" scenario in the crypto markets.
The cryptocurrency market's reaction was closely tied to expectations surrounding Trump's potential crypto-friendly policies.
The weekend saw significant activity, with the launch of two new meme coins by the Trump family. The "Official Trump" meme coin achieved a remarkable $10 billion market capitalization, while the "Melania" meme coin, introduced by the returning first lady, also gained substantial traction.
These developments contributed to massive trading volumes, with the Trump and Melania coins generating $31 billion and $7.2 billion in trading activity, respectively. "However, after the spike, these coins went down by 50% according to Forbes".
Bitcoin’s rising value, as analyzed by Investopedia, mirrors investor confidence driven by favorable market trends and anticipated pro-crypto policies from the new administration. The cryptocurrency has grown remarkably, gaining nearly 50% since the November election.
Spot bitcoin exchange-traded funds (ETFs) have seen a surge in investor interest, reflecting growing optimism about bitcoin’s prospects. On Friday alone, spot ETFs recorded net inflows of $975.6 million, according to Farside Investors.
Simultaneously, the likelihood of former President Donald Trump establishing a national bitcoin reserve in 2025 has climbed from 39% to 65% over the past week, as indicated by prediction market Polymarket.
According to Investopedia, the market dynamics extended beyond Bitcoin, with Solana reaching new all-time highs over the weekend. The platform's success was particularly noteworthy as it hosted both the Trump and Melania meme coins.
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