Trump-Related Meme Coins in Freefall as Crypto Market Takes a Hit

TL;DR

• Trump-themed memes followed the broader decline of the cryptocurrency sector, tanking by double digits.
• Official Trump has slipped below $12.50, but some analysts believe a resurgence could be on the horizon.

The Major Collapse

The brief pump in the cryptocurrency sector on March 2 and the early hours of March 3 was abruptly suspended by another huge correction.

The massive volatility was likely caused by Donald Trump’s actions. First, the American president confirmed that his administration will move forward with the plans to establish a strategic crypto reserve that will include leading assets like BTC, ETH, XRP, ADA, and SOL. The involved cryptocurrencies and the entire market reacted more than positively to the news.

On March 4, though, some of the previously announced trade tariffs came into effect. From today, the US will slam Canada and Mexico by 25% on most imported stocks, while Canadian energy will be the subject of a 10% duty.

The escalating trade war had a negative effect on the financial markets and the cryptocurrency industry. Bitcoin (BTC) tumbled below $83,000, while Ethereum (ETH) sank to a 16-month low.

The meme coin sector was not spared and is also covered in red. Trump-themed memes, such as Official Trump (TRUMP), MAGA (TRUMP), MAGA: Fight for Trump (TRUMPCOIN), and others are among the biggest losers, nosediving by double digits in the past 24 hours.

The Collapse of Official Trump

Currently, the asset trades at less than $12.50, representing an 82% collapse from the all-time high and an 18% decline on a 24-hour basis.

MAGA (TRUMP) was among the market’s top performers last summer. In June 2024, its price exploded beyond $17, while the market cap neared $800 million. Over the past months, it has been on an evident downtrend, and as of the moment of writing these lines, it hovers at a mere $0.32 (a 98% crash from the peak level).

Is TRUMP’s Comeback in the Cards?

Despite TRUMP’s recent negative performance, some industry participants believe a comeback is not out of the question. The X user CryptoELITES set $25 and $45 as short-term targets, envisioning an eventual rally to as high as $75.

Others, on the other hand, have previously criticized the asset’s existence. Balaji Srinivasan (the former CTO of Coinbase) claimed that such tokens only damage the reputation of the crypto sector instead of legitimizing it.

The American billionaire Mark Cuban shared a similar thesis, opining that the introduction of Trump’s meme coin is harmful to the industry.

This is the biggest bunch of self-serving Bullsh*t I have ever heard. In your world, there is no ownership. Just speculation.

Conclusion

The cryptocurrency market is known for its volatility, and the recent events surrounding Trump-themed memes have only added to the uncertainty. As the market continues to evolve, it is essential to stay informed and adapt to the changing landscape.

FAQs

What caused the decline in TRUMP’s price?

The decline in TRUMP’s price is attributed to the broader decline of the cryptocurrency sector, which was largely driven by the escalating trade war and the negative sentiment surrounding the market.

What is the current price of TRUMP?

As of the moment of writing, the price of TRUMP is less than $12.50.

What are the short-term targets for TRUMP?

Some industry participants believe that TRUMP could potentially rally to $25 or $45 in the short term, although this is subject to change.

What are the long-term prospects for TRUMP?

The long-term prospects for TRUMP are uncertain and will depend on a variety of factors, including the overall performance of the cryptocurrency market and the sentiment surrounding the asset.