$700M in Crypto Liquidations Hit Solana and Trump Memecoins Hard on Inauguration Day.

Crypto Markets React to Trump’s Inauguration Speech, Disappointment Follows Lack of Crypto Mentions

Crypto markets saw sharp price movements on Monday during Donald Trump’s inauguration, as excitement surrounding his presidency gave way to disappointment after the president failed to address cryptocurrency in his inaugural speech.

The CoinDesk 20 Index, a key benchmark for the broader cryptocurrency market, dropped more than 5% during the ceremony. Bitcoin (BTC), which had surged to over $106,000 ahead of the speech, fell to $101,000 before stabilizing around $103,000. Solana (SOL), which had been central to the Trump-related memecoin hype over the weekend, led the altcoin losses, plunging nearly 10% from its recent peak.

Trump Memecoins Take a Hit

TRUMP, the official memecoin launched on Solana just days before the inauguration, experienced a steep 30% drop from its $50 price point during Trump’s speech. Though it partially recovered, it was still down roughly 20% from its session high. MELANIA, the memecoin named after the First Lady and launched the day after TRUMP, saw a dramatic 46% decline before recouping some of the losses.

Liquidations Soar Amid Market Volatility

The volatile price swings led to widespread liquidations in leveraged positions. Over $700 million in derivatives across all digital assets were liquidated on exchanges during Monday’s market movement, according to data from CoinGlass. Nearly $500 million of the liquidations came from long positions betting on rising prices.

When factoring in the pre-inauguration selloff, total liquidations for the past 24 hours topped $1.2 billion, marking the largest leveraged wipeout of the year.

Industry Expectations vs. Reality

Leading up to the inauguration, there was a strong expectation within the crypto industry that Trump would embrace more supportive policies toward digital assets, especially after years of regulatory hurdles. However, the launch of the Trump-backed meme tokens right before he took office sparked a speculative rush in the market and drew criticism from many within the industry.

Nic Carter, co-founder of Castle Island Ventures, expressed disappointment in the move, calling the memecoin launch “preposterous” and accusing the Trump team of undermining the seriousness of crypto. “They’ve taken this to new depths of idiocy,” Carter said.

Congresswoman Maxine Waters, a top Democrat on the House Financial Services Committee, also criticized the move, stating, “This meme coin represents the worst of crypto and why many regulators, advocates, and policymakers have long raised concerns. President Trump’s actions will only harm the legitimacy of the crypto industry, which has fought for a fair playing field with traditional financial institutions.”