The absence of cryptocurrency in Donald Trump’s inaugural address has caused another crash in the altcoins market that culminated in over 816 million dollars worth of long liquidations.
The top assets like Ethereum (ETH), XRP, and others have suffered a 5% loss, whereas Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) saw a 10% correction this past 24 hours.
The TRUMP meme coin has suffered a massive 50% loss from its peak of $75, while the MELANIA meme coin fell 66% from its all-time high. With the market unwind from the weekend, participants are asking whether the altseason is at a close.
What’s Behind Today’s Altcoins Crash?
After the former President Donald Trump’s latest speech, in which he did not mention cryptocurrency, QCP Capital noticed a steep reaction from the market. This prompted a gradual sell-off, liquidating long positions in the market by $816 million.
The analysis from QCP Capital stated that the front end of the Bitcoin volatility curve is still strong and is remaining in a state of backwardation. In comparison, Bitcoin’s Volatility Curve is relatively unshaken still.
This market condition denotes investor’s risk aversion amid any uncertainty in the market. The downturn in the altcoins is even worse compared with Bitcoin. It is now in its third day of steep decreases.
Also, the performance of the top altcoins in the altcoin season index recently plummeted from 55 to 49, furthering the selling pressure that investors have been put under.Flagging performance and sell-off explains the market’s restlessness.
Donald TRUMP Meme Coin Crashes
The meme coin TRUMP faced an aggressive sell-off after the cryptocurrency market was ignored during the first address. The market sentiment which stemmed from the executive order’s signing not taking place, alongside the lack of Coinbase’s support for the coin, lead to the altcoin crash, thus, diminishing
TRUMP’s market cap to $7.67 billion from $14.47 billion. A few investors, however, view this as a chance to purchase. A notable investor, according to LookonChain, bought 237,757 TRUMP coins at an estimated total of $8 million.
Is the Altseason Over?
Investors are questioning whether altseasons are coming to an end after three consecutive days of selling pressure. Despite the current altcoin crash, market experts seem to remain positive. In fact, renowned crypto analyst Michael van de Poppe continues to be optimistic.
QCP Capital in its January 20th report mentioned that the launch of the TRUMP meme coin has the potential to trigger a new altseason. They observed that launching TRUMP on SOL gives a powerful vote of confidence to the chain and could lead to the SOL ETF being approved much earlier. Such launches have the potential to create media buzz which in turn can bring in retail money.
In another dubious move one of the analysts Mister Crypto provided a chart that suggests Bitcoin Diehards could be on for a further slide. He argues that the rest of the season for altcoins has merely been postponed and that alts will increase in surge, many never seen before.
