Donald Trump’s failure to mention crypto in his inaugural address has triggered an altcoins crash with more than $816 million in long liquidations. Top assets like Ethereum (ETH), XRP crashed by 5% each while Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) corrected by 10% in the last 24 hours. While the TRUMP meme coin is down by 50% from its peak of $75, the MELANIA meme coin has crashed 66% from the top. Amid the continued correction from the last weekend, investors are questioning whether the altseason is over.
QCP Capital reports a significant market reaction following former President Donald Trump’s recent speech, which notably excluded any mention of cryptocurrency. The omission triggered a gradual yet impactful sell-off, leading to the liquidation of $816 million in long positions across the market.
In its analysis, QCP Capital highlighted that the Bitcoin volatility curve remains firm at the front end, maintaining a state of backwardation. This market condition reflects continued caution among investors amid heightened uncertainty. In comparison to Bitcoin, the altcoins crash is even more severe, extending to the third day of sharp fall.
Furthermore, the altcoin season index, a performance indicator for the top altcoins, has dropped from 55 to 49 over the past day. This highlights the existing nervousness among investors amid continuous selling pressure.
Following the inaugural address with no crypto mention or no signing of the crypto executive order, the Official TRUMP meme coin has faced strong selling pressure despite top crypto exchange Coinbase announcing support for the coin.
Amid this altcoins crash, TRUMP’s market cap has dropped from the peak of $14.47 billion to $7.67 billion as of press time. However, it appears that some whales are seeing this as an opportunity to buy the dips. A TRUMP whale recently purchased 237,757 TRUMP coins for an investment of just over $8 million, as per data from LookonChain.
With three subsequent days of selling pressure, investors are questioning whether the altseason is coming to an end. However, market experts continue to be hopeful despite the current altcoin crash. Popular crypto analyst Michael van de Poppe stated:
“The DXY (Dollar Index) is down 1% and I suspect Yields will collapse. That, in itself, should be a trigger for altcoins to fire off, independent of what he signs”.
In its January 20th report, QCP Capital highlighted that the launch of the TRUMP meme coin could be a catalyst for the next altseason. It added: “Launching TRUMP on SOL proves to be a significant endorsement of the chain, making it plausible that the SOL ETF could gain approval much earlier than expected. With increased media exposure from similar launches, retail inflows are likely to come streaming in”.
Another analyst Mister Crypto shared a chart showing that Bitcoin dominance could drop even further. He added that the altseason is just delayed but it would be worth the wait. “Many altcoins will 10x,” noted the analyst.
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