Bitcoin Slips, Trump Token Plunges Over 20% as Crypto Market Cools

Bitcoin and other cryptocurrencies sank Tuesday, as bullish investor sentiment toward cryptocurrencies cooled following the inauguration of President Donald Trump.

TRUMP, a token launched last week and representing America’s new leader, plunged as much as 22% in 24 hours, according to CoinGecko data. Meanwhile, a token meme posted by first lady Melania Trump on Sunday crashed 58% in one day.

Bitcoin fell about 5% to $102,589, while Ether and XRP were down 3% and 5%, respectively.

Crypto investors have hailed Trump’s arrival at the White House as a positive moment for the industry. The president has promised to introduce pro-cryptocurrency policies, including an accommodative regulatory framework and a federal bitcoin hoard.

Although Trump is seen as poised to benefit crypto, at his inauguration on Monday there were no concrete policy announcements regarding the sector. This appears to be the main factor that took the wind out of the crypto market on Tuesday.

Kenneth Lamont, director of Morningstar, has warned investors not to jump into crypto trading without being properly informed of the risks involved.

“If Donald Trump keeps his election promises, we could see cryptocurrency markets continue to soar. However, investors would do well to resist the siren call of fear of missing out and sit idly by.” , Lamont said in emailed comments Tuesday.

Cryptocurrencies are known to be volatile. Bitcoin, the world’s largest digital coin, has already gone up or down by thousands of dollars in a single day. Alternative coins, or “altcoins,” like Ether and XRP, have proven even more prone to fluctuations.

“Fear of missing out is not an investment strategy. For many investors, the lure of easy wealth is strong,” Lamont said, adding that retail investors “tend to be bad at market timing, buying and selling at the worst times.