CRYPTO NEWS TODAY: With President TRUMP Back in Office, Is the Bull Run OVER?

President Trump’s return to office has sparked significant market movements, with a slew of executive orders set to take effect in the coming weeks. Adding to the intrigue, Elon Musk now leads the newly established Department of Generative Economic Development (D.O.G.E.), heightening anticipation across industries, especially crypto. However, the excitement has been overshadowed by a nearly 6% drop in the crypto market, leaving investors on edge.

Analysts are divided, with some suggesting the much-anticipated post-inauguration bull run might be over before it truly begins. But could this be a temporary dip, or is the market gearing up for something bigger? Let’s explore.

Bitcoin Price Drop: A Reminder of the Crypto Market's Volatility

Bitcoin’s sudden 5% drop today served as a sharp reminder to investors not to take market stability for granted. After a period of optimism and growing portfolios, this setback caught many by surprise. The culprit? Unexpectedly strong economic data that shifted the narrative on potential Federal Reserve rate cuts. Wall Street’s bets on a dovish Fed pivot now seem premature, leaving crypto markets rattled. Not only did the Bitcoin price drop, but the entire market cap by almost 6%, as in $3.52T. What to expect next?

Post-Inauguration Major Crypto Developments

Here’s a breakdown of today’s most impactful crypto developments:

1. Arthur Hayes Predicts Mid-March Market Peak: Hayes suggests a market correction is on the horizon after a liquidity-driven peak.
2. Ripple and Chainlink Team Up for RLUSD Stablecoin: A new DeFi innovation is taking center stage.
3. CFTC Chair’s Warning About Unregulated Crypto: Rostin Behnam’s farewell sparks regulatory concerns.
4. Meme Coins Suffer Major Losses: Dogecoin, Bonk, and others are down significantly.
5. Bitcoin ETF Inflows Soar Despite Price Dip: $1.1 billion poured into ETFs, but prices remain unaffected.

1- Mid-March: A Critical Turning Point?

Arthur Hayes, known for his market predictions, has revised his outlook. Previously concerned about a crash tied to Trump’s presidency, Hayes now believes December’s correction paved the way for growth. He forecasts a market peak in mid-March 2025, followed by a severe downturn.

Hayes attributes his optimism to increasing dollar liquidity, which could reach $612 billion in early 2025. He argues this liquidity boost may outweigh any policy disappointments. If Hayes is correct, this timeline could redefine trading strategies in the months ahead.

2- Ripple and Chainlink’s Partnership Could Reshape DeFi

Ripple and Chainlink have joined forces to introduce RLUSD, a stablecoin pegged to the dollar, on Ethereum and the XRP Ledger. This collaboration leverages Chainlink’s decentralized oracle network to provide real-time price feeds, enhancing transparency and security.

The move has sparked widespread discussion on Crypto Twitter, with many speculating about the broader implications for DeFi and stablecoin adoption.

3- CFTC Chair’s Farewell Stirs Regulatory Concerns

Rostin Behnam, the outgoing CFTC Chair, made waves with his parting remarks. Behnam, who played a key role in Binance’s $4.3 billion settlement, emphasized that much of the digital asset space remains unregulated in the U.S.

This statement raises questions about the future of crypto regulation and has drawn attention from both traditional finance and crypto communities.

4- Meme Coins Face Unprecedented Losses

The meme coin sector has been hit particularly hard, with tokens like Dogecoin and Bonk down 10-11%. AI16Z, a newer meme coin, took an even bigger hit, dropping 15%.

By comparison, Bitcoin’s 5% decline highlights the heightened volatility in the meme coin market. These losses may signal waning investor interest in speculative tokens.

5- ETF Inflows Surge, Yet Prices Stall

Bitcoin and Ethereum ETFs have seen record-breaking inflows, with $1.1 billion added in a single day. This brings total 2025 inflows to $1.75 billion.

Interestingly, Fidelity’s Bitcoin ETF has outpaced BlackRock’s IBIT in recent days, pulling in $370 million on Monday alone. Despite these inflows, Bitcoin’s price remains subdued, leaving analysts puzzled about the disconnect.