The value of bitcoin has slipped below $90,000 amidst a broad decline in cryptocurrency prices, erasing some of the notable advances made since President Donald Trump assumed office with a pro-crypto stance. As the U.S. stock market commenced trading, bitcoin stood at approximately $89,000, a notable drop from about $106,000, which was its value around Trump’s inaugural period. The downward trend in bitcoin, along with other digital currencies, escalated following a report revealing a more significant-than-anticipated decline in consumer confidence this month.
The cryptocurrency market is known for its volatility, with prices often experiencing swift fluctuations. Despite the downturn observed Tuesday, bitcoin still boasts a substantial increase since Trump secured his presidential win last year. Proponents see these price drops as an attractive entry point for investment opportunities. “Buy the dips!!!” Eric Trump, the president’s son, advocated on the social media platform X, using bitcoin’s symbol in place of the letter B.
The cryptocurrency sector has experienced a mix of fortunes in recent weeks. The current administration and certain pro-crypto legislators have vowed to usher in a promising era for the industry, with commitments to implement favorable regulations quickly. Recently, the Securities and Exchange Commission’s regulators have indicated their intention to drop enforcement actions against major industry entities, such as Coinbase and Robinhood.
However, certain incidents have underscored vulnerabilities in the still-evolving industry, like the large-scale hack of a significant cryptocurrency exchange and a notable scandal involving the president of Argentina and a meme coin. The Dubai-based cryptocurrency exchange, Bybit, disclosed last week that it suffered a sophisticated hack, resulting in a loss of approximately $1.5 billion worth of digital assets. Security experts suspect North Korea’s involvement, given its history with similar crypto thefts.
Argentine President Javier Milei is currently embroiled in a corruption investigation over his promotion of a meme coin named LIBRA, which saw its value spike and then rapidly plummet following Milei’s promotion on X. President Milei has distanced himself from LIBRA and denies any involvement in improper activities.
Meme coins are a high-risk variant of cryptocurrency, typically created as humorous ventures without intrinsic value, yet occasionally witnessing sharp price increases. A developer behind the LIBRA coin suggested that meme coins often appear to be a manipulated scheme favoring a select few to the detriment of average investors. Hayden Davis, the developer, also confessed his role in launching First Lady Melania Trump’s meme coin right before her husband’s presidential tenure began. The Melania meme coin was trading around 90 cents on Tuesday, a significant drop from over $13 at its initial launch. President Trump also played a role in introducing a meme coin around the time of his inauguration, reflecting a similar downward price movement.
Meanwhile, Solana, a prominent cryptocurrency actively involved within the meme coin sector, has witnessed its value nearly halve since President Trump’s inauguration.
