Crypto Market Earthquake: Trump Meme Coin Triggers Trillion-Dollar Volatility, Over 170,000 Liquidations, Bitcoin Surges Past $100,000The cryptocurrency market experienced violent swings over the past two days, sending shockwaves through global investors. Over 176,000 traders were liquidated within a 24-hour period, resulting in losses nearing $500 million
Crypto Market Earthquake: Trump Meme Coin Triggers Trillion-Dollar Volatility, Over 170,000 Liquidations, Bitcoin Surges Past $100,000
The cryptocurrency market experienced violent swings over the past two days, sending shockwaves through global investors. Over 176,000 traders were liquidated within a 24-hour period, resulting in losses nearing $500 million. One of the key triggers for this market turmoil was the launch of former US President Donald Trump's personal meme coin, "TRUMP," announced on his social media, igniting a market frenzy and unprecedented risk.
The Birth and Meteoric Rise of "Trump Coin"
On January 18th, Trump announced the launch of his "TRUMP" meme coin on his social media account, directing users to "gettrumpmemes" to acquire the token. Initial speculation suggested his account had been hacked, but Trump later confirmed the announcement on X (formerly Twitter).
"It's time to celebrate our victories! Join my TrumpCommunity. Get your TRUMP token. Have fun!" This inflammatory tweet quickly ignited the crypto market. Upon launch, TRUMP's price skyrocketed, surging by a phenomenal 1250% at its peak to reach $21 USDT. According to CoinGecko, its market capitalization briefly soared to $4 billion, placing it fourth among meme coins, behind DOGE ($58.7 billion), SHIB ($13.3 billion), and PEPE ($7.8 billion). This highlights the speculative and highly volatile nature of the meme coin market.
Bitcoin Breaks $100,000 Then Corrects, Ethereum Short Positions Hit Record High
Amidst the TRUMP-fueled rally, Bitcoin also saw dramatic price swings. It surged from around $97,000, breaking the $105,000 barrier and creating a new market high. However, this upward momentum was short-lived, with Bitcoin subsequently retracting below $103,000, experiencing an intraday drop exceeding $1100. This sharp shift in market sentiment reflects investor concerns about the market outlook.
Simultaneously, Ethereum felt the impact of the market volatility. A significant influx of funds into short positions caused Ethereum's price to fall by nearly 6% intraday. According to Zerohedge, Ethereum short positions reached an all-time high, further exacerbating market uncertainty.
Crypto Market Cap Exceeds $3.57 Trillion, Bitcoin Dominance Remains Significant
Despite the violent fluctuations, the overall cryptocurrency market remains substantial. Recent data shows a total market capitalization exceeding $3.57 trillion, with Bitcoin maintaining a dominant 57.2% share. As the leading cryptocurrency, Bitcoin's price movements significantly impact the entire market.
Trump's Expected Crypto Policy and Market Rebound
Trump's stance on the cryptocurrency market has been closely watched. Reports suggest that he plans to use executive power to alleviate regulatory burdens on crypto companies and establish a cryptocurrency advisory council upon assuming office. This news further boosted market sentiment, contributing to a market rebound.
Trump's continued bullish outlook on crypto, coupled with plans to ease regulations and form an advisory council, has partially fueled the recent market upswing. Increased expectations of Fed rate cuts also injected vitality into the crypto market. The recent strengthening of global risk assets is linked to renewed expectations of further Fed rate cuts following the release of US inflation data.
Global Crypto Adoption Continues to Grow, Significant Increase in Bitcoin DeFi Lock-up
Binance CEO Richard Teng noted that, according to Triple-A data, over 562 million people globally now own cryptocurrencies, indicating increasing adoption.
Furthermore, data shows substantial growth in Bitcoin's Decentralized Finance (DeFi) Total Value Locked (TVL) in 2024. Bitcoin DeFi TVL increased from $307 million in January 2024 to $6.5 billion by December 31st, a surge exceeding 2000%. Babylon, a Bitcoin staking and restaking platform, accounted for over 80% of the total Bitcoin DeFi TVL. This demonstrates the growing application of Bitcoin in DeFi and provides new momentum for its future development.
Bitcoin Technical Analysis: Cup-and-Handle Breakout Suggests Potential $276,400 Target Price
On January 17th, crypto analyst Ali stated on social media that Bitcoin had broken through a cup-and-handle pattern, suggesting a potential upside target price of $276,400. This technical analysis further fueled market speculation and anticipation regarding Bitcoin's future trajectory. However, technical analysis is not foolproof, and investors should remain cautious.
Conclusion
The emergence of the Trump meme coin, coupled with the dramatic volatility of Bitcoin and Ethereum, serves as a stark reminder that the cryptocurrency market presents both significant risks and opportunities. The market's volatility is extremely high, and investors need to remain rational, invest cautiously, and avoid blind following of trends. While the short term may be volatile, the continued development of crypto technology and the growing number of global users provide a solid foundation for long-term growth. However, regulatory uncertainty and sharp shifts in market sentiment remain crucial factors that investors must closely monitor. Before participating in the cryptocurrency market, thorough research and robust risk management planning are essential. Only through sufficient knowledge and risk awareness can one achieve success in this challenging market.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
