Market analyst Jim Bianco suggests that former President Trump’s January memecoin launch might have triggered the recent peak and subsequent crash in Bitcoin and other cryptocurrencies.
Bitcoin’s Sudden Drop
Bianco, a prominent figure in the financial world, tweeted that Bitcoin reached a high of around $109,000 in January, shortly after Trump’s coin debuted. Since then, Bitcoin’s value has plummeted. At the time of writing, it’s trading at $87,244, its lowest point since mid-November—a significant drop of nearly 8% in the last 24 hours and over 7% in the past week.
Solana’s Steep Decline
Bianco also points to Solana (SOL), a major Ethereum competitor, as another victim of the potential Trump-fueled memecoin craze. He notes that Solana hit its peak on January 22nd, just days after the Trump coin’s peak. Since then, SOL has lost almost half its value. Currently trading at $143.66, it’s down nearly 7.5% in the last week and over 13% in the past month, representing a more than 51% drop from its all-time high of $293.31.
The Connection?
Bianco’s theory suggests a correlation between the launch of Trump’s memecoin and the subsequent peak and subsequent crash in both Bitcoin and Solana. He highlights the significant drop in both cryptocurrencies following the memecoin’s launch, implying a possible causal link. However, it’s important to remember that this is just one analyst’s perspective, and other factors could have contributed to the market downturn.
