Bitcoin Drops, Trump Token Down More Than 20% As Crypto Market Cools

Bitcoin and other cryptocurrencies fell on Tuesday as investor optimism around cryptocurrencies cooled after Pres. Donald Trumpinauguration of St.

“Official Trump,” a token launched last week representing the new US leader, has fallen 26% in 24 hours, according to data from CoinGecko. Meanwhile, the meme token released on Sunday first lady Melania Trump, roughly halved in a day.

Bitcoin was little changed on Tuesday, trading at $104,375, according to Coin Metrics, paring losses of 3%. The broader crypto market as measured by CoinDesk 20 indexhung below the even line.

Crypto investors hailed Trump’s arrival at the White House as a positive moment for the industry. The president has promised to introduce policies to support cryptocurrencies, including a compliant regulatory framework and a federal bitcoin hoard.

While Trump is widely believed to favor crypto, there were no specific policy announcements regarding the sector at his inauguration on Monday. This turned out to be the main factor that took the sails out of the crypto market on Tuesday.

Kenneth Lamont, CEO of Morningstar, has warned investors against jumping into crypto trading without being properly informed about the risks involved.

“If Donald Trump fulfills his campaign promises, we can see the cryptocurrency markets continue to rise. However, investors would do well to resist the siren call of fear of losing money and sit back,” Lamont said in emailed comments on Tuesday.

Cryptocurrencies are notoriously volatile. Previously, Bitcoin, the world’s largest digital currency, rose or fell by thousands of dollars in a single day. Alternative coins, or “altcoins,” like Ether and XRP have proven even more volatile.

“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 time the market poorly, buying and selling at the worst times.”