Crypto market sees decline as Bitcoin and Trump token slide over 20%

• The new U.S. leader, represented by the token TRUMP, experienced a 26% drop in value within 24 hours.
• A meme token released Sunday by first lady Melania Trump also crashed.
• Trump's inauguration Monday lacked any concrete policy announcements regarding crypto.

On Tuesday, the price of other cryptocurrencies fell, as investor optimism about cryptocurrencies waned following President Trump's inauguration.

The newly launched token representing the U.S. leader, TRUMP, dropped 26% in 24 hours, while the meme token released by first lady Melania Trump crashed 54% in a day.

The price of Bitcoin decreased by approximately 4% to $103,550, while ether and XRP experienced a 2% and 6% decline, respectively.

The arrival of Trump in the White House has been viewed as a positive development for the crypto industry by investors. The president has pledged to introduce policies that will support cryptocurrencies, including a regulatory framework that is accommodating and a federal bitcoin hoard.

On Tuesday, the crypto market took a hit due to the lack of concrete policy announcements regarding the sector during Trump's inauguration on Monday, despite the expectation that he would be beneficial to the industry.

Morningstar principal Kenneth Lamont advised investors to avoid crypto trading without thorough knowledge of the associated risks.

If Donald Trump fulfills his campaign pledges, cryptocurrency markets may experience further growth. Nevertheless, investors should refrain from being swayed by the fear of missing out and remain cautious.

Bitcoin, the world's largest digital coin, has previously experienced significant price fluctuations, with rises or falls of thousands of dollars in a single day. Altcoins like ether and XRP have proven to be even more volatile.

"Missing out on opportunities is not a sound investment strategy. Many investors are drawn to the promise of quick wealth, but retail investors often struggle with market timing and make poor buying and selling decisions."