Bitcoin falls below $92,000 as crypto’s Trump boost goes backwards
Key Points:
- The newly launched Official Trump cryptocurrency is facing criticism from investors and media.
- Despite an initial surge, its value has dropped as the expected post-inauguration rally didn’t happen.
- Its link to the U.S. president makes it unique in the crypto world.
Market Update:
NASDAQ: DJT
- Trump Media & Technology Group
- Market Cap: $7 billion
- Today’s Change: (-2.50%) -$0.84
- Current Price: $32.71 (as of Jan 24, 2025, 4:00 PM ET)
Official Trump Cryptocurrency: A Rough Week
The Official Trump cryptocurrency took a sharp hit in the past week. It launched on Jan. 17 with a strong debut but has since dropped significantly. As of Sunday morning, its price fell by 50% in just one week, even though it remains up over 360% since launch.
The token’s decline aligns with negative media reports and concerns from crypto investors. Hopes for a big rally after Trump’s inauguration didn’t materialize, leading to a sell-off by investors seeking quick profits.
What’s Driving the Drop?
Official Trump became one of the most controversial tokens in crypto shortly after President Trump announced it just before re-entering office. The media has been skeptical, raising questions about conflicts of interest and fears that large token holders could sell off their stakes.
Two companies linked to Trump, CIC Digital LLC and Fight Fight Fight LLC, own 80% of the token supply. However, restrictions prevent these large stakeholders from selling their holdings for the next three years.
Disappointment over the lack of post-inauguration gains has also led some investors to exit. Many had hoped for explosive profits immediately after Trump’s return to power, but those expectations have not been met.
What’s Next for Official Trump?
Official Trump is a meme coin, meaning its value is largely speculative with little real-world use. Its connection to President Trump drives its appeal, but it’s unclear how much Trump’s actions or popularity will impact the token’s price.
This cryptocurrency is in uncharted territory, being the first token tied directly to a sitting U.S. president. While the Trump brand could lead to future gains, this token is high-risk and likely to remain volatile.
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