A cartoon image of US President-elect Donald Trump with cryptocurrency tokens, depicted in front of the White House to mark his inauguration, displayed at a Coinhero store in Hong Kong, China, on Monday, Jan. 20, 2025.
Paul Yeung | Bloomberg | Getty Images
Bitcoin spiked to a new all-time high early Monday but pulled back following the inauguration of President Donald Trump.
The flagship cryptocurrency was last lower by more than 2% at $103,558.38, according to Coin Metrics, in what appeared to be a “buy the rumor sell the news” event. Overnight, it rose as high as $109,350.72.
Bitcoin gained steam last week as traders anticipated the inauguration, viewed by many in crypto as symbolic of a new golden era of more supportive crypto regulation in the U.S. Ahead of the event, speculation that Trump might announce an executive order on crypto early in his new term grew. Enthusiasts hope to see him create a crypto advisory council and establish a national bitcoin stockpile or reserve.
Bitcoin hits a new record ahead of Trump inauguration
Over the weekend, Trump launched the “Official Trump” meme coin, which on Monday morning had risen to a more than $10 billion market cap, according to CoinGecko. Returning First Lady Melania Trump launched her own “Melania” meme coin Sunday. They have attracted $31 billion and $7.2 billion in trading volumes, respectively, over the last day.
“Rumors that cryptocurrency may be declared a national interest by the United States during the inauguration are having a positive effect on the price of bitcoin,” Gracy Chen, CEO of crypto exchange Bitget, told CNBC. “I don’t believe the rise in bitcoin’s price is due to the launch of new meme tokens. Rather … without the release of the Trump family tokens, bitcoin’s price would have grown more. Instead, capital shifted to new coins, limiting overall growth.”
The broader crypto market, as measured by the CoinDesk 20 index, fell 3.6% on Monday afternoon. Solana, down 9%, led the losses following a 14% rally over the weekend, benefitting from the Trump meme coin being launched on the popular Ethereum alternative network.
Meme coins are considered the riskiest corner of the already risky cryptocurrency market, but the Trumps’ coin launches over the weekend gave traders further conviction that the incoming administration will be positive for the industry, according to Joel Kruger, market strategist at LMAX.
“There is a logic here that would suggest that putting a stamp of approval on what could be perceived as the wildest of crypto assets, meme coins, is the best way to send a message of just how supportive the market should expect the administration to be when it comes to embracing crypto and making America a major player in the space,” he told CNBC.
Noelle Acheson, economist and author of the “Crypto is Macro Now” newsletter, echoed that sentiment, calling the meme drops net positive and “a sign he is very much in favor of new ideas [and] new markets.”
Bitcoin’s new record opens the door to a possible upside extension to $130,000, LMAX’s Kruger added.
