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Bitcoin hit a new all-time high overnight after the incoming first couple launched a pair of meme coins and as traders await the inauguration of incoming President Donald Trump.
On Monday the flagship cryptocurrency was last higher by nearly 1% at $106,622.54, according to Coin Metrics. Earlier, it rose as high as $109,350.72, after briefly dipping below the $100,000 mark Sunday.
Bitcoin hits a new record ahead of Trump inauguration
Over the weekend, Trump launched the “Official Trump” meme coin, which has risen to a $10.6 billion market cap and surged more than 659% since Friday night, according to data from CoinGecko and Coinbase. On Monday it was down about 27% from its record price of around $73 a coin, after returning First Lady Melania Trump launched her own “Melania” meme coin Sunday — nearly halving the Trump coin in value at one point.
Melania Meme, which began trading Sunday evening, has hit a $1.3 billion market cap and 14% price increase since its launch. It has attracted $7.3 billion in trading volumes over the last day, compared to the Trump meme’s $31 billion.
Although meme coins are considered the riskiest corner of the already risky cryptocurrency market, the Trumps’ coin launches over the weekend gave traders further conviction that the incoming administration will be positive for the industry.
“The move highlights President Trump’s embrace of crypto and belief that Americans should have the freedom to operate in the emerging asset class,” said 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.”
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 started gaining steam last week as speculation started to build that Trump might announce an executive order on crypto early in his new term. Gracy Chen, CEO crypto exchange Bitget, said that optimism is having a greater effect on its price.
“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,” she 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 1% on Monday and has gained less than 1% since Saturday. The token tied to Solana is down more than 7% on Monday but up 15% since Saturday, benefitting from the Trump meme coin being launched on the popular Ethereum alternative network. Ether has lost 5% since Saturday.
Bitcoin’s new record opens the door to a possible upside extension to $130,000, LMAX’s Kruger added.
