Trump ushering in new ‘era of memecoins,’ analysts call for altseason

Trump ushering in new ‘era of memecoins,’ analysts call for altseason

The Trump family’s newly-launched tokens may usher in a wave of retail investor adoption for high-risk digital assets such as memecoins and smaller cryptocurrencies.

Trump’s advisory team launched the Official Trump (TRUMP) memecoin on Jan. 18 and the Official Melania (MELANIA) token on Jan. 19 on the Solana network, ahead of US President-elect Donald Trump’s presidential inauguration on Jan. 20.

The memecoin launches represent a “pivotal moment” for the crypto industry, according to Anndy Lian, author and intergovernmental blockchain expert.

The move will usher in a “new era for memecoins and altcoins,” Lian told Cointelegraph, adding:

“It’s fascinating to consider this as a revival of the ICO craze, amplified by significant market capital and global influence. This isn’t just another token launch; it’s backed by the kind of coordinated financial groups and celebrity endorsement that can drive market caps into the billions, showcasing a scale and impact not seen before in the memecoin sector.”

Despite widespread retail enthusiasm, the Trump token fell by over 17% in the 24 hours leading up to 10:15 am UTC. The token rose to a peak market cap of above $14.9 billion on Jan. 19, before falling over 27% to the current $10.8 billion market cap, CoinMarketCap data shows.

The TRUMP token saw $5 billion wiped off its market cap in the 40 minutes after MELANIA launched, with its price falling 38% from $74.6 to $45.9 on Jan. 19.

A new era for political memecoins: CryptoQuant CEO

Other notable industry insiders also see the Trump family’s memecoin launch as an unprecedented moment for the crypto industry.

Notably, this will open a new era for memecoin investing, according to Ki Young Ju, the founder and CEO of CryptoQuant.

“The underlying reality of financial markets behaving like memes isn’t going away,” Ju wrote in a Jan. 20 X post. He added:

“It’s worth considering how to make the most of it. With its decentralized nature, crypto is a fully global, unrestricted market, meaning even more meme-like assets will inevitably emerge.”

“The Trump administration has embraced free markets instead of regulated markets, and over the next four years, we’re likely to see all kinds of experiments with meme-driven communities in the crypto,” Ju said.

For other analysts, the memecoin launch signals a potential rotation into altcoins, or cryptocurrencies excluding Bitcoin and Ether.

The memecoin’s success underscores the high-risk appetite of investors chasing profits, according to Valentin Fournier, an analyst at Blockhead Research Network.

In a research note shared with Cointelegraph, he stated:

“Such moves indicate a potential rotation of capital from major assets to smaller, high-risk ones. Altcoins could outperform Bitcoin and Ethereum in the coming months.”

Still, some see this as a net negative for the crypto space, accusing Trump’s team of orchestrating a “pump and dump scheme” after back-to-back memecoin launches added billions of dollars to the net worths of the incoming US president and first lady.

 

Source: https://cointelegraph.com/news/trump-era-memecoins-analysts-predict-altseason

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US Crypto Transactions Face New Tax Reporting Rules

US Crypto Transactions Face New Tax Reporting Rules

According to Cointelegraph, cryptocurrency transactions in the United States will soon be subject to third-party tax reporting requirements, marking a significant shift in regulatory oversight as digital asset valuations continue to rise. Starting in 2025, centralized crypto exchanges (CEXs) and other brokers will be required to report sales and exchanges of digital assets, including cryptocurrencies, as per the final regulation published by the US Internal Revenue Service (IRS). This move is intended to assist investors in filing accurate tax returns related to digital asset transactions and to address potential noncompliance issues within the digital currency sector, according to an IRS report issued in June 2024.

Some investors view this regulatory change as an overreach, potentially driving more users towards decentralized trading platforms. Anndy Lian, an author and intergovernmental blockchain expert, highlighted the risk of users migrating to decentralized platforms like Uniswap or PancakeSwap. Lian noted that this shift could create a paradox where the IRS’s efforts to increase tax revenue might inadvertently push users towards environments where tax enforcement is currently challenging. Reflecting the crypto industry’s backlash, the Blockchain Association filed a lawsuit against the IRS in December 2024, arguing that the rules are unconstitutional as they include decentralized exchanges (DEXs) under the ‘broker’ term, thereby extending data collection requirements to them.

While crypto transactions on decentralized finance (DeFi) protocols are currently difficult for tax authorities to trace due to the absence of central intermediaries, advancements in blockchain analytics could make DeFi transactions more traceable by 2027, according to Lian. He suggested that while decentralized systems pose challenges for tax enforcement now, future developments in blockchain analytics and regulatory measures could alter this landscape. To prevent a potential exodus of users, Lian emphasized the need for specialized tax brackets that consider the high volatility and significant retail participation in the crypto market, arguing that treating crypto gains the same as traditional capital gains may not always be equitable.

The rising valuations of cryptocurrencies have also attracted the attention of other jurisdictions. European retail investors should prepare for taxation following the implementation of the Markets in Crypto-Assets (MiCA) framework, as noted by Dmitrij Radin, founder of Zekret and chief technology officer of Fideum, a regulatory and blockchain infrastructure firm. Radin stated that retail users will be required to provide information and data, which will be scrutinized, leading to increased taxation for most Europeans. MiCA, the world’s first comprehensive regulatory crypto framework, went into full effect for crypto-asset service providers on December 30.

 

Source: https://www.binance.com/en/square/post/01-16-2025-us-crypto-transactions-face-new-tax-reporting-rules-19018556510562

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Donald Trump Inauguration Will Bring ‘Noise’ to 2025 Crypto Market: Analysts

Donald Trump Inauguration Will Bring ‘Noise’ to 2025 Crypto Market: Analysts

Monday’s inauguration of Donald Trump isn’t likely to bring any significant price moves for major cryptocurrencies, according to industry experts who spoke to Decrypt before Friday night’s surprise drop of an official Trump meme coin.

Well-established coins such as Bitcoin, Solana, and XRP have risen considerably since the Republican’s election victory on November 5, leading some experts to suggest that the market has already priced in the inauguration.

“I do not anticipate any significant movements on Monday,” YouHodler’s chief of markets Ruslan Lienkha, told Decrypt.

“The event appears to be already priced in, and the inauguration is mainly ceremonial rather than market-moving,” he added.

Some observers also highlight the possibility of a “sell-the-news” day for major tokens, with Bitcoin having already gained strongly in the runup to Trump’s swearing in.

“With [positive] CPI data already priced in and Trump’s inauguration unlikely to introduce any immediate, game-changing policies for crypto, Monday could see a pullback as short-term traders lock in gains,” suggests Anndy Lian, an intergovernmental blockchain advisor and cryptocurrency author.

This suggestion resonates with starker warnings given by figures such as BitMex co-founder Arthur Hayes, who predicted last month that Bitcoin may suffer a “vicious sell-off” when Trump takes office.

While not as pessimistic as Hayes, Swarm co-founder Philipp Pieper tells Decrypt that the inauguration itself doesn’t provide the market with any new information.

“It’s really important to underline here that any price movement on Monday is going to be mostly noise in the bigger picture,” he explained.

But this picture could change as soon as Trump and his administration gets to work, with traders waiting to see whether the current President-elect will live up to earlier pronouncements.

“I’m more closely focused on what he (and his administration) will implement over the next few months,” eToro market analyst Simon Peters told Decrypt.

Peters notes that Trump complained at a recent press conference that interest rates are “far too high,” suggesting that the incoming President may push to lower them.

“A loosening of financial conditions under his administration could provide a tailwind for crypto-asset prices,” Peters adds.

And assuming that recent reports of crypto-related executive orders are accurate, analysts are relatively confident that the general trajectory of the market this year will be upwards.

Pieper explained: “As the regulatory environment becomes clearer and the market grasps tangible updates for the first year of the Trump administration, we’re likely to see a general uplift in prices.”

Legislative and regulatory moves are also likely to combine with tentatively improving macroeconomic indicators, such as US inflation.

“Inflation and rate sensitivity matters because it ultimately has a major say in the outlook for money supply and market liquidity,” said Pieper. “The more liquidity in the market, the more it will raise asset prices.”

Yet while the arrival of both crypto-friendly macroeconomics and presidents should point towards generally rising prices, some analysts warn that some of Donald Trump’s other economic policies could indirectly bite the cryptocurrency market.

“Other policies, such as the potential intensification of trade wars and the imposition of new tariffs, could sustain elevated inflation levels and exert downward pressure on financial markets,” warns Youhodler’s Ruslan Lienkha.

This is perhaps why it would be premature to expect major moves on Monday, since the market will need the new administration to act before it can begin differentiating perceptions from reality.

On the other hand, Monday may expose smaller cap tokens and (politically themed) meme coins to a greater degree of volatility.

“For instance, tokens like MAGA or DOGE [Department of Government Efficiency] may stage a rally, influenced by emotional trading rather than substantive factors,” Lienkha suggested.

However, Phillipp Pieper cautions that they may just as easily crash, in view of their low liquidity.

“The issue with these kinds of token is they’re largely sentiment-driven which can be extremely volatile and difficult to underpin the inherent value,” he said.

 

Source: https://decrypt.co/301635/donald-trump-inauguration-2025-crypto-market

 

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