Crypto Markets Tumble as Trump’s Inauguration Speech Skips Crypto, $700M in Liquidations Follow

Crypto markets experienced a rollercoaster ride on Monday during Donald Trump’s inauguration, as initial excitement quickly turned to disappointment after the president made no mention of cryptocurrency in his speech.

The CoinDesk 20 Index, a broad measure of the top cryptocurrencies, dropped more than 5% during the ceremony. Bitcoin (BTC), which had been trading above $106,000 before the speech, fell to $101,000, before finding some stability around $103,000. Solana (SOL), the blockchain central to the Trump-related memecoin craze over the weekend, saw the largest decline among major altcoins, dropping nearly 10% from its recent all-time high.

Trump Memecoins Take a Hit

The TRUMP token, which launched on Solana just days before the inauguration, plummeted 30% during the speech from $50. Although it made a partial recovery, it remained about 20% down from its session high. Similarly, the MELANIA token, named after the First Lady and launched one day after TRUMP, saw a drastic 46% drop before paring some of its losses.

Liquidations Spike as Volatility Spreads

The increased volatility also triggered a massive wave of liquidations in leveraged crypto positions. According to CoinGlass data, over $700 million in derivatives were liquidated across digital assets on exchanges throughout the day. Of that total, nearly $500 million were liquidated long positions that had been betting on price increases.

Taking into account the overnight selloff before the inauguration, total liquidations in the past 24 hours exceeded $1.2 billion, marking the largest wipeout in leveraged positions this year.

Industry Backlash and Expectations Fall Flat

The crypto community had anticipated that Trump’s presidency would usher in more favorable policies for digital assets, after years of regulatory uncertainty. However, the lack of crypto references during his inauguration speech and the launch of Trump-affiliated memecoins led to a speculative frenzy that caught the attention of critics within the industry.

Nic Carter, co-founder of Castle Island Ventures, a crypto investment firm, criticized the launch of the memecoins. “This is absolutely absurd,” Carter said. “They’re undermining the legitimacy of the space by resorting to such gimmicks.”

Democratic Congresswoman Maxine Waters, who serves as the top Democrat on the House Financial Services Committee, also condemned the move. “This meme coin represents the worst aspects of crypto and highlights the concerns regulators have had for years,” Waters said in a statement. “Trump’s actions will only damage the credibility of the crypto industry, which has worked hard for fairness and legitimacy in the financial world.”