Trump May Have Just Killed the ‘Crypto Pump’, Sees His Memecoin Fade

Crypto has surged, thanks to a pro-crypto president in the US, but worries about the sustainability of this are starting to creep up.

Trump was very vocal in his support of the crypto community, but alas, it turns out he may have slightly over-promised. Yes, a politician promising more than they will deliver…shocking.  

Although, in all fairness, some of what he promised, he actually did deliver on. Leadership at the US Securities and Exchange Commission (SEC) has changed, validating his “I’ll fire Gensler on day one” promise, although he left on his own accord.

He also installed a Crypto Czar, though it remains to be seen what exactly he can achieve in the role.

Traders Move from Altcoins to Bitcoin, Say Analysts

But where things fell short a little is the Strategic Bitcoin Reserve (SBR). An executive order for a sovereign wealth fund failed to mention Bitcoin or crypto, and so far, it’s the US states, and not the federal government, that carry the SBR torch.

10X Research analysts believe that the macro trends and whatever “Trump’s next moves” will be are important going forward.

Related: Is the Bull Market Over? Crypto Analysts Say Retail Sentiment Hits Lowest in Years

In a recent note, they said that crypto trading volumes “have fallen sharply to levels last seen before the Trump election”, with a lot of traders moving from altcoins to Bitcoin.

Bitcoin has remained relatively strong as sophisticated traders have shifted out of altcoins and into BTC, maintaining its dominance above 60%. The recent altcoin (and meme coin) rally quickly faded, confirming the broader market’s rotation into Bitcoin.

10X Research

The analysts believe that “institutional players increasingly treat Bitcoin as a macro asset”, a view that Matt Hougan of Bitwise also shared. He said that retail is showing a lot less interest than pro investors and compared the situation to “living in two completely separate worlds”.

The Trump trade tariff spat certainly didn’t help assure investors, as James Toledano, the Chief Operating Officer at Unity Wallet, said in an emailed statement.

Trump’s tariffs create uncertainty in global trade, which can trigger risk-off behavior among investors. […] With Trump signalling more tariffs on key industries (metals in particular), we may see increased market sensitivity and more volatility to his economic policies.

James Toledano, Chief Operating Officer at Unity Wallet

TRUMP Memecoin Slowly Fades Away

Meanwhile, Trump’s memecoin endeavour, TRUMP, has not only drawn a lot of criticism, it also keeps dropping in value. The token currently trades for US$16.24 (AU$25.88), a far cry from its high of US$75.35 (AU$120.11) upon launch.

And according to a New York Times report, the Trump family made big wins on the memecoin bet, collecting close to US$100 million in trading fees.

Related: VanEck Says SOL Could Hit $520 Soon as SEC Opens Door To Solana ETF

YouTube Sleuth Coffeezilla was one of the harshest and earliest critics of the TRUMP coin launch, calling it “nasty work”.