Bitcoin’s price tumbled below the $90,000 mark on Tuesday, reaching its lowest level since mid-November. This sharp decline comes amid a widespread crypto market downturn, exacerbated by the largest cryptocurrency theft in history and several high-profile controversies surrounding meme coins.
Early Tuesday morning, Bitcoin was trading at $88,780, marking a 7.5% decline over the past 24 hours. The world’s most valuable cryptocurrency has now lost more than 19% since reaching an all-time high of $109,114 on January 20—coinciding with Donald Trump’s inauguration.
Ethereum, the second-largest cryptocurrency by market cap, suffered an even greater hit, plunging over 11% to $2,390. Other major digital assets, including Ripple’s XRP, Binance’s BNB, and Solana’s SOL, also saw sharp declines of 14.3%, 6.4%, and 15%, respectively.
Trump’s Meme Coin Faces a Major Crash
The downturn has also impacted former President Donald Trump’s meme coin, $TRUMP, which launched on the Solana blockchain just before his inauguration. Initially soaring above $75 with a market cap exceeding $15 billion, the token has since plummeted to $12.90—a staggering 82% drop from its peak.
Despite the initial hype, the project’s website had cautioned investors that $TRUMP was not an “investment opportunity” but rather a symbolic show of support for the president. However, many crypto experts had warned that a high-volatility meme token linked to Trump could damage the industry’s credibility.
Meme Coin Controversies Shake Investor Confidence
The crypto world has been rocked by multiple meme coin-related scandals in recent weeks, further rattling investor sentiment.
One of the most notorious incidents involved Argentinian President Javier Milei and the $LIBRA token. Earlier this month, Milei promoted $LIBRA on social media, claiming it would drive economic growth in Argentina by funding small businesses. The token’s market cap skyrocketed past $4 billion, but its early investors quickly cashed out, triggering a dramatic price collapse reminiscent of a pump-and-dump scheme.
Milei has since distanced himself from the project, dismissing complaints from investors who lost money. “If you go to a casino and lose money, what’s there to complain about when you knew the risks?” he remarked. However, the fallout has been severe, with dozens of fraud lawsuits now targeting the Argentinian leader.
Meanwhile, another scam shook the crypto community when a fraudster impersonated the premier of Bermuda to promote a fake digital currency called the Bermuda National Coin.
Adding to the growing list of controversies, Central African Republic President Faustin-Archange Touadéra recently launched a meme coin to “raise awareness” for one of the world’s poorest nations. However, the coin’s value has already collapsed by more than 97% since its debut.
Market Outlook: More Volatility Ahead?
Bitcoin’s drop below $90,000 reflects the current uncertainty in the crypto market, with investor confidence shaken by security breaches and reckless meme coin speculation. While crypto enthusiasts remain hopeful for a rebound, the recent wave of scandals and price crashes may prompt increased regulatory scrutiny and further market instability.