Topline
Bitcoin Drops Below $9,000, Dipping Almost 20% from Trump's Inauguration Day Record High
Bitcoin took a dive below the $90,000 mark on Tuesday, hitting its lowest level since mid-November. This plunge in price comes amidst a broader downfall in the crypto market, following a significant crypto tokens theft and a few high-profile controversies surrounding meme coins.
Keys Facts
The world's most valuable cryptocurrency, Bitcoin, was worth $88,780 early Tuesday, a 7.5% drop from its previous day's value. Since reaching an all-time high of $109,114 on January 20 (President Donald Trump's inauguration day), Bitcoin's value has plummeted over 19%.
Ether, the second-most valuable crypto asset by market cap, witnessed a steeper drop of more than 11%, falling to $2,390 on Tuesday morning. Other popular crypto tokens like Ripple Labs' XRP, Binance's BNB, and Solana's SOL also experienced significant declines.
Based on reports, the prices of XRP, BNB, and SOL fell by 14.3%, 6.4%, and 15%, respectively, within the past day.
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Trump's Meme Coin Impact
Just before his inauguration, President Trump launched an official meme coin, $TRUMP, on the Solana blockchain. After its launch, the meme coin surged above $75, with its market cap briefly crossing $15 billion. As of Tuesday, the meme token's price stood at $12.90, a 14% drop from the previous 24 hours, and an 82% fall from its all-time high. At the time of launch, the token's website included a disclaimer, advising it was not intended as an investment opportunity or security, but rather an "expression of support" for the president.
Controversies Outside Trump
A few high-profile controversies have surrounded meme coins outside Trump. For instance, Argentinian President Javier Milei promoted the $LIBRA token, leading to a surge in its price and a subsequent market cap of $4 billion. However, early backers quickly cashed out, causing the token's price to plummet, resembling a pump-and-dump scheme. Following this incident, Milei distanced himself from the project, stating he didn't see a reason for investor complaints if they understood the risks.
Another meme coin-related controversy involved a scammer posing as the Premier of Bermuda to promote a fake token, the Bermuda National Coin. About a week prior to this, Central African Republic President Faustin-Archange Touadéra introduced a meme coin as a supposed "experiment" to raise his country's profile. The coin's value has crumbled by over 97% since its launch.
Bybit Exchange Hack
Last week, a cybercriminal gained access to one of Bybit exchange's wallets, leading to a significant theft of Ether worth nearly $1.5 billion. The exchange's CEO, Ben Zhou, confirmed that the company remains solvent and that user assets are safe, even if the stolen tokens can't be recovered.
Further Reading
Trump Unleashes Bitcoin to 4-Week High—Crypto Experts Push for Stockpile on Inauguration Day (Our Website)
Bitcoin Dips to 2-Month Low—JPMorgan Billionaire Dimon Still Warns Against Bitcoin (Our Website)
- The cryptocurrency price plunge on Tuesday also affected Bitcoin Trump's white house-linked meme coin, with its price falling nearly 14% to $12.90.
- The falling Bitcoin price, at around $88,780 early Tuesday, represents a 7.5% drop from its previous day's value and a substantial 19% decrease since President Donald Trump's inauguration day when it hit an all-time high of $109,114.
- While Bitcoin and other leading cryptocurrencies like Ether, Ripple Labs' XRP, Binance's BNB, and Solana's SOL are all experiencing falling prices due to the broader downfall in the crypto market, there was also a notable crypto prices drop for Argentinian President Javier Milei's promoted token, $LIBRA, which plummeted like a pump-and-dump scheme.
- Bitcoin's fall below the $90,000 mark on Tuesday, hitting its lowest level since mid-November, has also impacted the crypto market, with the price of Bitcoin Trump's meme coin following the trend, almost mirroring the broader market's turmoil, further affecting the overall cryptocurrency prices.
