In this monthly update, we delve into the biggest stories of the past month and review what has happened to the markets. With the inauguration of Donald Trump, there has been a lot of movement in the market. Not only has Bitcoin been affected, but several altcoins are also feeling the impact of the new administration. In this update, we have a closer look at the emergence of meme coins and the rising XRP.
New ruling with new memecoins
For weeks, people had been anticipating the moment Trump would be sworn in as President of the United States. There was much speculation that this would have a significant impact on Bitcoin's price. To some extent, this turned out to be true: on the day of the inauguration, Monday, January 20, Bitcoin surged to a new all-time high of $109,000. The next day, however, the price dropped again by 7%. Yet, Bitcoin is not the only cryptocurrency influenced by Trump.
TRUMP and MELANIA coins
Both Donald Trump and his wife Melania have released their own coins in recent weeks, named TRUMP and MELANIA. Trump had only shared a link to the coin on X, which initially caused confusion about what it was exactly. But soon after, it took off; the coin, $TRUMP, skyrocketed from just a few cents to dozens of dollars within hours. This also impacted Solana, where the meme coin was launched. Solana itself rose by no less than 30%. Traders sold their positions in other meme coins to buy $TRUMP, creating a lot of movement in the market.
Two days later, $MELANIA was launched. This coin was also well received; on its first day, it reached a price of $12. Ten days later, the hype had significantly subsided, with the price hovering just above $2. The emergence of these coins has raised concerns for some people. Trump is a world leader who is clearly engaging with crypto, which, on the one hand, makes the world of crypto more accessible to a larger audience, but on the other hand, has been criticized as 'shameless self-enrichment.' With these types of meme coins, it is often more about making money than introducing innovative ideas. This could result in companies and projects with serious ambitions having less chance of receiving investments from the public.
First Crypto Regulations Scrapped
As promised by Gary Gensler himself, he stepped down as chairman of the U.S. Securities and Exchange Commission (SEC) on the day of the inauguration. He was known for his strict regulations on crypto. His (temporary) successor is Mark Uyeda. Uyeda has been serving as an SEC commissioner since June 2022 and has also criticized Gensler‘s crypto policies. He even said the policies were 'a disaster for the industry.'
Just days after Trump‘s inauguration, the SEC repealed a rule that had been introduced only three years ago. The 'Staff Accounting Bulletin 121' (SAB 121) was a guideline that required financial companies to record digital assets held on behalf of clients as a liability on their balance sheets. Although it was intended to enhance transparency, it faced criticism, with many companies feeling constrained by it.
On January 23, 2025, the SEC announced that SAB 121 had been officially repealed. This is seen by many as a victory for the U.S. crypto industry. Banks and other financial institutions now have more flexibility in managing cryptocurrencies. Trump has also made further promises to transform the U.S. into the 'crypto capital of the world.'
To kick things off, Trump has signed a Crypto Executive Order. This order focuses primarily on the development of technologies and regulations related to crypto, allowing it more room to grow. Trump also aims to eventually build a reserve of digital assets. Whether all these promises will actually be fulfilled remains to be seen. We‘ll have to wait and see how Trump‘s actions will impact the market.
New all-time high XRP market cap
The price of XRP surged by 10% in mid-January, with trading volume exceeding $10 billion. This growth stems from a combination of technical signals and interest from large investors, also known as 'whales.' Although whale activity has slightly decreased, their involvement remains significant. This indicates that major players have confidence in the future of XRP.
A key indicator of the positive outlook is the Chaikin Money Flow (CMF), which recently saw a strong increase. The CMF primarily focuses on the average trading volume, pointing to growing demand for XRP, which could lead to further price increases. Additionally, a 'golden cross' seems to be forming—a technical pattern historically associated with sustained price growth. Potential price targets are at $3.28, and with a strong breakout, new record highs around $3.50 could come into view. Some analysts even predict the coin could reach $4 or higher. Since the elections in November, XRP has risen by an impressive 480%, indicating significant confidence in the coin.
Rise driven by change in SEC leadership
For Ripple, the company behind XRP, this could mark the end of a years-long lawsuit. In December 2020, Ripple was sued by the SEC for allegedly selling XRP as an unregistered security. Ripple has since been fined over $125 million, after which they filed for an appeal.
It is expected that under the new SEC leadership, the lawsuit will not proceed and will either be settled or dismissed. Ripple‘s CEO, Brad Garlinghouse, had previously stated that the U.S. elections in November would have a major impact on Ripple‘s operations. The company also made substantial contributions to Trump‘s campaign, donating as much as $5 million to the president‘s inauguration committee.
New licences for Ripple
Ripple is already looking ahead and has secured two important licences. With the so-called Money Transmitter Licenses (MTLs), Ripple can expand its services into new markets and better respond to the demand for new payment solutions.
MTLs enable Ripple to provide secure and regulated payment services. The company fully manages all transactions on behalf of its customers. Particularly in highly regulated states like Texas and New York, where strict requirements are imposed, these licences represent a significant milestone. Ripple emphasizes that obtaining these licences in such states 'creates a solid foundation for further growth.'
MiCAR effect on Tether (USDT)
Within the European Union, recent changes regarding stablecoins have been introduced due to the MiCA (Markets in Crypto-Assets) regulation, which has recently come into effect.
There are stricter rules that this category must adhere to before being allowed to trade. For example, issuers of stablecoins must now hold at least 60% of their reserves in European banks.
One of the largest stablecoin issuers, Tether, has already indicated that it will not comply with these requirements. They have withdrawn their stablecoin EURt from the European market. Their other stablecoin, USDT, is criticized for its lack of transparency about its reserves and its compliance with global regulations. Because transparency is one of the key aspects of MiCAR, USDT can no longer be traded in Europe unless Tether meets the requirements.
Consequences in Europe
As of March 31, stablecoins that do not meet the requirements will no longer be allowed on the European markets. This means that several exchanges have already delisted Tether (USDT), including Coinbase and Crypto.com. Coinmerce will also be removing USDT from its platform in order to comply with European regulations. Tether is therefore set to lose a significant portion of its market in Europe.
However, they don‘t seem too upset about it: according to a spokesperson, the stablecoin market in Europe is negligible compared to the rest of the world. "The MiCA regulation makes it more complicated to issue stablecoins, which could pose more risks," said the Tether spokesperson. It is still possible to buy USDT, but many exchanges are promoting USD Coin (USDC) as a replacement. This stablecoin, issued by Circle, does comply with MiCAR and can therefore continue to exist in Europe.
Without Tether on the market, liquidity will be significantly reduced, as many trading pairs involve USDT. This could lead to more slippage and reduced efficiency in the market. A shift is also expected, as there will be a flow towards other stablecoins. This could also result in higher fees. For international transactions, the transition to USDC could lead to slower and more expensive networks. Whether these predictions will all come true remains to be seen. What is certain is that there will be an impact in Europe when Tether and other coins exit the market.