TRUMP token drop raises Wall Street concerns
Trump’s meme coin crashes 75% from its all-time high
Donald Trump’s meme coin ($TRUMP), which captured the attention of the entire crypto community, experienced a sharp rise followed by an equally dramatic crash within weeks of its launch.
On January 19, 2025—just three days before Trump’s inauguration for his second presidential term—the coin hit an all-time high of $75.35. However, by February 1, its price had plummeted by 75% to $19.09, according to Crypto News.
Despite the decline, $TRUMP still maintains a significant market capitalization, with a fully diluted valuation exceeding $20 billion. However, analysts report that 80% of the tokens are controlled by entities affiliated with the Trump Organization. The extreme volatility of the coin has raised concerns among financial experts and crypto market critics alike.
As of the time of writing, $TRUMP is trading at $21.22, reflecting a 12.7% drop in the past 24 hours.
Scaramucci raises alarm
Anthony Scaramucci, founder of SkyBridge Capital and a former Trump ally turned critic, has accused the ex-president of manipulating the $TRUMP token’s price and artificially inflating its value.
Scaramucci pointed out on his X page that Trump’s post on Truth Social, aimed at promoting the meme coin, accelerated its price collapse. In his view, this was a key factor in the token’s 70% decline from its peak, marking the end of speculative growth.
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Trump, who owns Truth Social through Trump Media & Technology Group, is no stranger to controversial financial ventures. Previously, he has promoted NFTs, DeFi platforms, and even branded merchandise such as MAGA-themed Bibles and sneakers.
Wall Street expresses concern
Scaramucci is not the only one warning about the risks associated with Trump’s increasing involvement in the crypto industry. Hedge fund Elliott Management has released an analytical memo stating that Trump’s pro-crypto stance could trigger a new wave of speculation, posing a threat to financial stability, according to the Financial Times.
Notably, since Trump’s election victory, the price of Bitcoin—the largest cryptocurrency by market capitalization—has surged past $100,000, with the former president promising to turn the U.S. into a "Bitcoin superpower."
Recent market data confirms that Bitcoin (BTC) closed January at $102,400 on the Bitstamp exchange.
Market reactions and economic outlook
Meanwhile, Nobel Prize-winning economist Eugene Fama, often referred to as the "father of modern financial theory," has expressed skepticism about Bitcoin’s long-term value. Speaking on the Capitalisn’t podcast, he stated that cryptocurrencies “violate all principles of a medium of exchange” and predicted that Bitcoin could lose all value within the next decade.
Investor and Rich Dad, Poor Dad author Robert Kiyosaki also predicts a Bitcoin decline due to Trump's new tariffs.
The sharp decline of $TRUMP and increasing regulatory scrutiny raise questions about the meme coin’s future and its broader impact on the cryptocurrency market.
