Investing.com — Bitcoin fell on Monday, reversing course from a weekend rally as increased market volatility following President-elect Donald Trump's launch of two memecoins dampened sentiment toward cryptocurrency markets.
Traders were also on edge ahead of Trump's inauguration later Monday, when the president-elect is expected to sign a series of executive orders outlining policy changes. But what these changes will entail is still unclear, even though Trump has promised more cryptocurrency-friendly policies during his term.
It fell 2.5% to $102,481.9 by 00:28 ET (05:28 GMT).
Trump and Melania Memecoin Fluctuations Affect Cryptocurrency Appetite
Cryptocurrency markets initially welcomed the launch of Trump's meme coin, $TRUMP, which has accelerated sharply since its launch on Friday. The token saw a surge of over 7,000% within hours of its launch, gaining a market capitalization of over $14 billion.
But the token then experienced significant profit-taking, falling sharply from its weekend highs.
Trump has also drawn criticism for the launch of a new memcoin themed by First Lady Melania Trump, $MELANIA, with cryptocurrency traders raising some concerns about the ethical implications of Trump taking advantage of his political status to turn speculative markets to his advantage.
The launch of Trump Coin, of which the president-elect holds a large number of tokens, has significantly boosted his personal wealth, at least on paper.
Trump's policies in focus as inauguration approaches
Trump is scheduled to take office from 12:00 EST (17:00 GMT) on Monday.
The president-elect has promised to roll out cryptocurrency-friendly regulations during his second term, pledging to make America the “crypto capital” of the world.
While Trump has nominated several pro-cryptocurrency candidates for key regulatory positions, markets have been uncertain about what policies he will outline, given that some of his more ambitious promises, such as the Bitcoin Strategic Reserve, may require congressional approval.
Uncertainty about the impact of Trump's policies on the broader economy, especially given his tough stance on immigration and trade, kept risk appetite low.
Crypto Price Today: Altcoins Track Bitcoin Losses
Broader cryptocurrency prices followed losses in Bitcoin, as it also lost ground from the weekend rally.
The world's No. 2 cryptocurrency fell 0.3% to $3,287.29, while it fell 3.4% to $3.0939.
And, it fell between 5% and 11%, while among the tokens it lost 7.5%.
