Tue Jan 21 19:53:01 IST 2025: ## Crypto Market Cools After Trump’s Inauguration Despite Initial Optimism
**NEW YORK** – The cryptocurrency market experienced a significant downturn Tuesday, following a surge of bullish sentiment after President Donald Trump’s inauguration. While Trump’s pro-cryptocurrency stance had initially boosted prices, the lack of concrete policy announcements on the matter led to a market correction.
Bitcoin, the largest cryptocurrency, fell from a high of $109,350.72 to around $104,375, while the broader crypto market, as measured by the CoinDesk 20 index, showed little change. Tokens associated with the President and First Lady also experienced sharp drops, with “Official Trump” plunging as much as 26% and a Melania Trump meme token losing roughly half its value.
Financial analysts cautioned investors against impulsive trading decisions driven by “fear of missing out” (FOMO). Kenneth Lamont of Morningstar warned that cryptocurrencies are inherently volatile and that uninformed investors risk significant losses. While Trump’s promised policies could potentially benefit the crypto market in the long term, Lamont urged caution and advised against speculative trading based on uncertain future developments. The volatility of cryptocurrencies, particularly altcoins, remains a significant factor impacting market performance.
First Piper 