Solana and Trump Memecoins Drop Amid $700 Million in Crypto Liquidations
Crypto markets experienced significant volatility during Donald Trump's inauguration as he did not mention crypto in his speech, leading to disappointment among investors.
- The CoinDesk 20 Index fell over 5% during the ceremony.
- Bitcoin dropped from $106,000 to $101,000 before stabilizing around $103,000.
- Solana led altcoin losses, down nearly 10% from its recent high.
- TRUMP memecoin declined 30% from $50 during the speech and later recovered slightly but remained down about 20% from its session high.
- MELANIA token fell as much as 46% before recovering some losses.
Overall liquidations exceeded $1.2 billion in 24 hours, marking the largest leverage wipeout this year. Over $700 million in derivatives were liquidated on Monday alone, with nearly $500 million from long positions betting on rising prices.
Anticipation for Trump's presidency included hopes for favorable policies toward digital assets, but the launch of Trump-affiliated meme tokens sparked a speculative frenzy, causing concern among industry figures about the implications for crypto legitimacy.
Criticism arose from figures like Nic Carter, who called the memecoin launch "preposterous," and Congresswoman Maxine Waters, who stated it represents the worst of crypto and undermines efforts for regulatory legitimacy.