The crypto market has registered a substantial decline, with nearly all cryptocurrencies trading in the red. Bitcoin (BTC) is down almost 4% over the past 24 hours and has dipped below $105,000 to trade around $102,550. Ethereum (ETH) is down nearly 4% and has dropped below $3,300 to a low of $3,201.
Ripple (XRP), Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Toncoin (TON), Stellar (XLM), Hedera (HBAR), Polkadot (DOT), Litecoin (LTC), and Uniswap (UNI) also recorded significant declines. As a result, the crypto market cap is down 3.15% and currently sits at $3.53 trillion.
TRUMP, MELANIA Meme Coins Crash
The Trump family meme coins have lost a significant chunk in market value following Donald Trump’s inauguration. The TRUMP token saw its gains halved as its market cap dropped to $7 billion. On the other hand, MELANIA dropped from around $2 billion to $790 million. Around 80% of the TRUMP tokens are owned by Donald Trump’s Affiliated CIC Digital and Fight, Fight, Fight. The meme coins were released months after Trump and his sons announced the launch of World Liberty Financial, a decentralized finance (DeFi) platform.
The launch of the TRUMP and MELANIA meme coins also raises a serious ethical dilemma, according to Justin D’Anethan, an independent crypto analyst.
“While it is tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora’s box of ethical and regulatory concerns.”
Cryptocurrency lawyer Preston Byrne stated in a blog post there was a 90% chance of a civil lawsuit opposing the coin over the next few weeks.
“Someone will lose money, and some lawyer will come up with a theory and file. The meme coin launch is, purely from a political perspective, an enormous unforced error.”
However, the Trump Organization has said that upon entering office, Trump will hand over the daily management of his real estate, hotel, golf, media, and licensing portfolio to his children.
Trump’s Meme Coin Pivot Sours Mood
The launch of the Trump family meme coins has soured the mood in crypto, with critics calling it a cash grab that undermines efforts to legitimize digital assets. The industry felt unfairly targeted by the Biden administration, invested heavily in the Trump campaign, and is eager for the new president to make crypto a part of mainstream finance. On his part, Trump has promised a lighter regulatory touch and has picked pro-crypto officials for key government positions. The markets soared following Trump’s election victory, with prominent crypto community members hosting a lavish ball ahead of the inauguration. As the ball was ongoing, Trump announced he was offering a new cryptocurrency, the TRUMP meme coin. The unexpected announcement dampened the mood for many in crypto, with Tom Schmidt, a partner at crypto venture capital firm Dragonfly, stating,
“I really was bummed out when I saw it. It just felt very grifty and cheap.”
Meme coins are popular among small communities within the crypto space. The tokens are often created as a joke and offer no real value. However, their price can skyrocket if enough people invest in them. Popular meme coins include Dogecoin (DOGE), Fartcoin, and Dogwifhat (WIF).
The launch has divided the community, with some hailing the launch. Buyers have driven the value of the tokens considerably, with TRUMP trading around $70 at its peak. The meme coin fell dramatically after First Lady Melania Trump launched her own meme coin. However, both tokens have registered substantial drops and are trading at half their peak value. However, some crypto community members fear associating with meme coins hinders Trump’s credibility and ability to enact reforms.
“Now, on the cusp of getting some liberalization of crypto regulations in this country, the main thing people are thinking about crypto is, ‘Oh, it’s just a casino for these meme coins.’It does the opposite of validating us, it makes it look completely unserious.”
Banking Industry Ready For Crypto
Bank of America CEO Brian Moynihan believes the US banking industry will embrace crypto if regulators allow it. The CEO was responding to a question about how the industry’s approach to crypto could change given President Trump’s support. Moynihan stated,
“If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it. If you go down the street here and you go in and buy lunch, right, if you can pay with Visa, Mastercard, a debit card, Apple Pay, etc., this would just be another form of payment. We have hundreds of patents on blockchain already, we know how to enter the field.”
American banks have been hesitant to let customers use crypto for retail transactions. However, their institutional and wealth management arms are already engaging with the crypto market through spot Bitcoin ETFs.
Ripple (XRP) Witnessing Growing Institutional Interest
Ripple (XRP) registered a sharp jump of 3% on Wednesday after the United States Securities and Exchange Commission (SEC) announced a new crypto task force. The task force will create a comprehensive framework for digital assets. The new administration will likely see the SEC withdraw its case against Ripple. According to the SEC website, a closed-door meeting will be held with the acting SEC Chair on Thursday. Among the matters on the agenda are discussions about resolving litigation claims and matters relating to enforcement proceedings. Ripple’s Chief Legal Officer Stuart Alderoty shared his excitement about working with the SEC to create a regulatory framework for crypto, stating,
“Looking forward to working with the Crypto Task Force to undo the prior administration’s damage.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) fell for the second day in a row as sellers drove the price below $105,000. The flagship cryptocurrency is down over 3% in the past 24 hours and is struggling to stay above $102,000. For bullish sentiment to return, BTC must stay above $100,000, a key support level. A move above $103,000, combined with growing buy volumes and positive moving averages, could power a move above $105,000. Sustained bullish momentum could see BTC test the $110,000 resistance zone.
However, if BTC drops below $100,000, we could see a spike in selling pressure. If sellers maintain control, we could see momentum wane, and a drop below the key $100,000 level could become possible. While the long-term sentiment around BTC remains bullish, we could see a decline in the short term. BTC was bullish for most of last week, moving above the 20-day SMA on Tuesday after registering an increase of 2.19% and settling at $96,566. Bullish sentiment intensified on Wednesday as BTC rose nearly 4% to move past the 50-day SMA and settle at $100,051. However, momentum waned on Thursday as BTC dropped to an intraday low of $97,094. It recovered from this level to settle at $99,798, ultimately registering only a marginal decline.
Source: TradingView
Buyers returned to the market on Friday as BTC rose nearly 4% and surged past $100,000 to settle at $103,732. Momentum waned over the weekend as BTC registered a marginal drop on Saturday. Buyers attempted a recovery on Sunday as BTC reached an intraday high of $106,552 before losing momentum. As a result, BTC dropped just over 2% and ended the weekend at $101,434. BTC rallied on Monday, rising to an all-time high of $109,350. However, it lost momentum and dropped to an intraday low of $99,514 before settling at $102,108. Buyers retained control on Tuesday and BTC registered an increase of 3.56% and settled at $106,054.
However, market sentiment changed on Wednesday as sellers took control. As a result, BTC dropped over 2% to $103,715. The current session sees BTC down just over 1% and trading around $102,490.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has declined during the current session after failing to move past the 20-day SMA and $3,400. ETH has been facing considerable volatility as a public spat between the community and the Ethereum Foundation negatively impacts the price. ETH made a strong recovery after dipping to an intraday low of $2,927, reclaiming $3,000 and rising to $3,226 on Tuesday. Bullish sentiment intensified Wednesday as ETH surged past the 20-day SMA and settled at $3,450. However, ETH failed to stay at this level and dropped over 4% to $3,308 on Thursday. The price recovered on Friday, rising nearly 5% to $3,473 but fell below the 20-day SMA on Saturday and settled at $3,305.
Source: TradingView
Sellers retained control on Sunday after buyers failed to mount a recovery. As a result, ETH dropped nearly 3% and settled at $3,212. The current week began with ETH rallying to an intraday high of $3,452. However, it could not stay at this level and ultimately settled at $3,280. Buyers retained control on Tuesday as ETH registered an increase of 1.44% and settled at $3,327. However, it could not move past the 20-day SMA and fell back in the red on Wednesday, dropping 2.57% to $3,242. The current session sees ETH down nearly 1% and trading around $3,211.
Solana (SOL) Price Analysis
Solana (SOL) has witnessed unprecedented volatility since setting a new all-time high over the weekend. SOL was bullish most of last week, rising 2.58% on Tuesday and settling at $187. Bullish sentiment registered a substantial increase on Wednesday as SOL surged nearly 10% to move past the 20-day SMA and settle at $205. SOL faced volatility on Thursday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as SOL rose 2.56% to move past the 50-day SMA and settle at $211. Buyers retained control on Friday, and SOL registered an increase of 4% and settled at $219.
Source: TradingView
Bullish sentiment registered a substantial increase on Saturday as SOL rallied an incredible 19.19% to surge past $250 and settle at $261. Buyers retained control on Sunday as SOL set a new all-time high of $295. However, it lost momentum after reaching this level and quickly dropped to $252, falling nearly 4%. Buyers attempted a recovery on Monday as SOL rose to an intraday high of $272 before losing momentum and dropping to $241. The price experienced significant volatility on Tuesday as buyers and sellers attempted to establish control. Buyers ultimately gained the upper hand as SOL rose 3.47% to $250. The price rallied to an intraday high of $272 on Wednesday. However, SOL could not push higher and ultimately settled at $257. The current session sees SOL down over 3% and trading around $249.
Celestia (TIA) Price Analysis
Celestia (TIA) has struggled to move past the 20-day SMA, with sellers looking to drive it below its support levels. TIA was bullish last week and had risen to $5.48 by Friday. However, market sentiment changed considerably over the weekend after it failed to move past the resistance at $5.50. As a result, sellers took control on Saturday and TIA fell below the 20-day SMA after a drop of nearly 10% and settled at $4.85. Buyers attempted a recovery on Sunday as TIA briefly reclaimed $5 and rose to an intraday high of $5.27. However, they lost momentum after reaching this level, and the price fell over 4% to $4.64.
Source: TradingView
TIA surged to an intraday high of $5.20 on Monday as it attempted to consolidate above $5 and the 20-day SMA. However, it could not stay at this level and dropped to $4.61, ultimately registering a marginal decline. TIA rebounded on Tuesday, rising nearly 6% and settling at $4.89. However, it could not move past the 20-day SMA and dropped 4.44% on Wednesday to settle at $4.67. The current session sees TIA marginally down as sellers look to drive it below a key support level. If sellers drive the price below this level, TIA could drop to $4.
Algorand (ALGO) Price Analysis
Algorand (ALGO) surged to an intraday high of $0.496 on Friday as buyers attempted to push above $0.50. However, sellers drove the price down and it settled at $0.468. Sellers took control over the weekend as the price fell just over 5% to $0.444. Selling pressure intensified on Sunday as ALGO dropped nearly 11%, slipping below the 20 and 50-day SMAs and settling at $0.397. Despite the bearish sentiment, ALGO recovered on Monday, surging to an intraday high of $0.478. However, it could not stay at this level and dropped to settle at $0.429.
Source: TradingView
Markets turned bearish on Tuesday, and ALGO faced considerable volatility before dropping over 2% and settling at $0.423. Bearish sentiment intensified on Wednesday as the price dropped 4.33% to $0.405. The current session sees ALGO down over 2%, falling below $0.40 and trading around $0.395. If sellers retain control, the price could drop to $0.35, where buyers could prop up the price.
Uniswap (UNI) Price Analysis
Uniswap (UNI) has been trading in the red since the weekend after failing to stay above $15 and the 50-day SMA. UNI registered a significant jump of over 6% on Friday to move past the 50-day SMA and $50. However, it failed to remain at this level and dropped 5.52% on Saturday, going below the 50-day SMA and settling at $14.17. Selling pressure intensified on Sunday as UNI dropped 6.33%, going below the 20-day SMA and settling at $13.28.
Source: TradingView
UNI staged a substantial rally on Monday, surging to an intraday high of $14.75. However, it lost momentum after reaching this level and fell back to settle at $13.50, ultimately registering an increase of 1.65%. UNI faced significant volatility on Tuesday before registering a marginal decline. Bearish sentiment intensified on Wednesday as UNI dropped nearly 5% to $12.87, closing below a key support level. The current session sees UNI down 2.36% and trading around $12.57.
Filecoin (FIL) Price Analysis
Filecoin (FIL) recovered strongly after dropping to an intraday low of $4.62 at the beginning of last week, rising over 6% on Tuesday and settling at $5.22. It crossed the 20-day SMA on Wednesday, rising over 8% and settling at $5.64. Thursday saw a slight dip as FIL dropped to an intraday low of $5.38 before settling at $5.61. However, buyers were back in control on Friday, with FIL rising 4.12% and moving to $5.84. With the 50-day SMA acting as a dynamic resistance level, buyers lost momentum on Saturday, and FIL dropped nearly 7% to $5.44.
Source: TradingView
Bearish sentiment intensified on Sunday, and FIL plummeted nearly 90% to slip below the 20-day SMA and $5 to settle at $4.97. FIL rallied to an intraday high of $5.46 on Monday. However, it could not stay at this level and ultimately settled at $5.09, registering an increase of 2.42%. Buyers retained control on Tuesday as the price rose just over 3% to $5.25. Bearish sentiment returned on Wednesday as FIL dropped nearly 5%, slipping below $5 and settling at $4.99. The current session sees the price down 1.39% and trading around $4.92 as sellers look to drive the price toward $4.50.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
