Bitcoin jumps to a new record above $109,000 as traders cheer Trump inauguration, meme coins

On Monday the flagship cryptocurrency was last higher by nearly 1% at $106,622.54, according to Coin Metrics. Earlier, it rose as high as $109,350.72, after dipping below the $100,000 mark Sunday.

Over the weekend, Trump launched the “Official Trump” meme coin, which has risen to a $10.6 billion market cap and surged more than 659% since Friday night, according to data from CoinGecko and Coinbase. On Monday it was down about 27% from its record price of around $73 a coin, after returning First Lady Melania Trump launched her own “Melania” meme coin Sunday — nearly halving the Trump coin in value at one point.

Melania Meme, which began trading Sunday evening, has hit a $1.3 billion market cap and 14% price increase since its launch. It has attracted $7.3 billion in trading volumes over the last day, compared to the Trump meme’s $31 billion.

Although meme coins are considered the riskiest corner of the already risky cryptocurrency market, the Trumps’ coin launches over the weekend gave traders further conviction that the incoming administration will be positive for the industry.

“The move highlights President Trump’s embrace of crypto and belief that Americans should have the freedom to operate in the emerging asset class,” said Joel Kruger, market strategist at LMAX.

“There is a logic here that would suggest that putting a stamp of approval on what could be perceived as the wildest of crypto assets, meme coins, is the best way to send a message of just how supportive the market should expect the administration to be when it comes to embracing crypto and making America a major player in the space.”

Noelle Acheson, economist and author of the “Crypto is Macro Now” newsletter, echoed that sentiment, calling the meme drops net positive and “a sign he is very much in favor of new ideas [and] new markets.”

Investors on Monday will be fixated on Trump’s inauguration, looking for crypto-related executive orders.

Bitcoin’s new record opens the door to a possible upside extension to $130,000, LMAX’s Kruger added.