The cryptocurrency market faced significant turbulence today as $TRUMP coin, the official meme cryptocurrency linked to the 47th President of the United States, Donald Trump, experienced a dramatic 20% crash. This plunge came shortly after Trump was sworn in for his second term on January 20, 2025.
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$TRUMP coin was trading at $38.89, sharply down from its previous day’s value of $48.94, according to data from CoinMarketCap. The crypto also saw a steep decline in its market capitalization, shedding 21.28% to settle at $7.78 billion, compared to $9.78 billion just 24 hours earlier.
Despite the downturn, $TRUMP remains well above its all-time lows and continues to attract attention from both retail and institutional investors. The coin previously hit its all-time high of $75.35 on January 19, 2025, in the run-up to Trump’s much-anticipated White House return.
Market Reaction to Trump’s Comeback
Donald Trump, 78, officially resumed his presidency on Monday, January 20, during an indoor ceremony at the Capitol Rotunda due to freezing weather conditions in Washington, D.C. The event, which marked a rare political comeback, triggered widespread speculation in the cryptocurrency community about $TRUMP’s future performance.
While stock markets in the U.S. opened higher on Tuesday, investors now await Trump’s executive orders on key issues such as energy, immigration, and trade. These policies could impact market sentiment and indirectly influence the performance of $TRUMP and other politically themed cryptocurrencies.
$TRUMP Coin’s Recent Surge and Correction
Launched as a meme cryptocurrency to celebrate Trump’s political legacy, $TRUMP initially saw a meteoric rise, surging over 300% following its debut, fueled by optimism around Trump’s anticipated return to power. However, today’s sharp decline suggests that investor enthusiasm may have cooled after the inauguration.
Analysts believe the crash reflects a mix of profit-taking and uncertainty surrounding the administration’s early policy decisions. “The sharp sell-off in $TRUMP was expected after its speculative rally. The market is now looking for concrete developments from the administration that could drive renewed confidence,” said Rachel Carter, a senior crypto analyst at Blockchain Insights.
Comparison with Other Political Cryptocurrencies
Interestingly, $TRUMP’s rival coin, $MELANIA, associated with former First Lady Melania Trump, has shown more stability in recent weeks. However, $TRUMP continues to dominate in market capitalization and trading volume.
As the political and financial landscape evolves under Trump’s leadership, $TRUMP coin’s performance will likely remain under the spotlight, serving as a unique barometer for the intersection of cryptocurrency and politics.