Bitcoin Jumps to New Record Above $109,000 as Traders Cheer Trump Inauguration, Meme Coins

Bitcoin it hit a new high overnight after the first entry pair released a pair of meme coins while traders wait. Inauguration of incoming President Donald Trump.

The cryptocurrency was last up nearly 1% on Monday at $106,622.54, according to Coin Metrics. Earlier, it rose to $109,350.72 after briefly dipping below $100,000 on Sunday.

on the weekend Trump launched it has”official trump“The meme coin has risen to a market cap of $10.6 billion and is up more than 659% since Friday night, according to data from CoinGecko and Coinbase. It fell about 27% on Monday to a record price of around $73 per coin, after returning. He fired first lady Melania Trump his “Melania” meme coin on Sunday — cutting the Trump coin’s value by nearly half at one point.

Melania Memewhich started trading on Sunday evening, has achieved a 1.3 billion dollar and 14% price increase since its launch. It has attracted $7.3 billion in trading volume in the last day, compared to $31 billion for the Trump meme.

Although meme coins are already considered the riskiest corner of the cryptocurrency market, Trumps coin release over the weekend gave traders more confidence that the incoming administration will be positive for the industry.

“The move highlights President Trump’s embrace of crypto and his belief that Americans should be free to trade in the emerging asset class,” said Joel Kruger, market strategist at LMAX.

“There’s a logic here that suggests putting a stamp of approval on what might be perceived as the wildest of crypto-assets, meme coins, is the best way to signal how much support the market should expect from the administration in embracing crypto and making America a major player in the space.”

Noelle Acheson, economist and author of the “Crypto is Macro Now” newsletter, echoed that sentiment, calling the meme drop a positive sign and “a sign that’s very supportive of new ideas (and) new markets.”

Bitcoin began to gain steam last week when speculation began that Trump might announce an executive order on crypto early in his new term. Gracy Chen, CEO of crypto exchange Bitget, said optimism has a bigger impact on its price.

“Rumours that the United States may declare cryptocurrency a national interest during the inauguration have a positive effect on the price of bitcoin,” he told CNBC. “I don’t believe that the increase in the price of bitcoin is due to the launch of new meme tokens. Rather … without the release of tokens by the Trump family, the price of bitcoin would have grown further. Instead, capital shifted to new coins, limiting the overall growth. . “

The broader crypto market, as measured CoinDesk 20 index, fell 1% on Monday and has gained less than 1% since Saturday. Token linked Solana It fell more than 7% on Monday, but is up 15% since Saturday, benefiting from being a Trump meme currency. It was launched on the popular Ethereum alternative the network Ether It has lost 5% since Saturday.

Bitcoin’s new record opens the door for a possible upward extension to $130,000, LMAX’s Kruger added.