The “Official Trump” token, launched last week to represent the new U.S. president, plummeted by as much as 26% within 24 hours, according to CoinGecko data. Similarly, a meme token introduced Sunday by First Lady Melania Trump saw its value drop by nearly 50% in a day.
Bitcoin was trading around $104,375, based on Coin Metrics data—higher than its 24-hour low but still down from its record $109,350.72 reached shortly before Trump’s swearing-in. The broader cryptocurrency market, as tracked by the CoinDesk 20 index, remained slightly below break-even.
Crypto investors had initially welcomed Trump’s presidency, anticipating policies favorable to the sector, including regulatory support and potential federal bitcoin reserves. However, Monday’s inauguration lacked concrete announcements on cryptocurrency policies, dampening market momentum.
Kenneth Lamont, a principal at Morningstar, cautioned investors about the risks of trading in cryptocurrencies without adequate preparation.
“If Trump delivers on his campaign promises, cryptocurrency markets could see further growth,” Lamont said in an email Tuesday. “But investors should avoid succumbing to the fear of missing out and remain cautious.”
Cryptocurrencies are notorious for their volatility. Bitcoin, the largest digital coin, has experienced daily swings of thousands of dollars, while altcoins such as ether and XRP are even more susceptible to sharp fluctuations.
“Fear of missing out is not a sound investment strategy,” Lamont added. “Retail investors often struggle with timing the market, buying high and selling low.”
