US new home sales unexpectedly rise in April

Point of maximum weakness

source : cnbc

Source: Theedgemarkets

source : finance.yahoo

In the often unpredictable world of cryptocurrency, even exclusive events don’t guarantee profits. A recent report sheds light on a surprising reality for some of the most prominent holders of the TRUMP memecoin. While former U.S. President Donald Trump hosted an exclusive dinner for the top 220 holders of the token, the financial picture for many wasn’t as bright as the occasion might suggest. This situation offers a valuable look into the volatile nature of political tokens and the broader memecoin performance landscape.

What’s Happening with TRUMP Memecoin Holders?

The premise was unique: an invitation-only dinner hosted by Donald Trump himself, extended to the top 220 individuals holding the TRUMP token. This event could easily be perceived as a reward for loyalty or a catalyst for positive sentiment around the token. However, a report by The Guardian, citing data analysis, revealed a less celebratory financial outcome for a significant portion of this elite group.

• Out of the 220 top TRUMP token holders invited, 95 were found to have incurred net losses.
• This means approximately 43% of the most prominent holders are currently “in the red” on their TRUMP memecoin investments.
• The total combined losses for these 95 individuals amount to a staggering $8.95 million since the token’s launch in January.

This finding is particularly noteworthy because these are not just casual investors, but the individuals holding the largest quantities of the token, often assumed to have gotten in early or have significant influence. Yet, a substantial percentage are facing considerable crypto losses.

Analyzing the Crypto Losses Among Top TRUMP Token Investors

Delving deeper into the data highlights the severity of these losses for some individuals. The report specifically points out one user, known by the address label “GAnt,” who ranks fourth on the overall TRUMP token leaderboard by holdings. Despite their high ranking, GAnt has reportedly suffered the steepest individual loss among the group, totaling $1.06 million.

This situation underscores a critical point about cryptocurrency markets, especially memecoins: holding a large position or being an early adopter does not automatically guarantee profit. Factors influencing these crypto losses can include:

Potential Factors Contributing to Losses:

• Buying Near Peaks: Some top holders might have accumulated their large positions during periods of high price speculation, leaving them vulnerable to subsequent corrections.
• Market Volatility: Memecoins are notoriously volatile. Sharp price drops can quickly erase gains or deepen losses, regardless of entry point.
• Lack of Liquidity: For large holders, exiting positions without significantly impacting the price can be challenging, potentially leading to less favorable execution prices.
• Broader Market Conditions: The performance of individual tokens like TRUMP is often influenced by the overall sentiment and trends in the wider cryptocurrency market.

The fact that such significant losses are observed among the top echelon of TRUMP token holders serves as a stark reminder of the inherent risks involved in highly speculative assets.

Why Are Memecoin Performance Metrics Showing Red?

Memecoin performance is driven primarily by hype, community sentiment, social media trends, and often, specific events. Unlike traditional assets or even many established cryptocurrencies with underlying technology or use cases, memecoins derive value almost entirely from speculation and cultural relevance.

The TRUMP memecoin adds a layer of political affiliation to this dynamic. Its price can be influenced not only by general crypto market movements but also by political news, polls, and events related to Donald Trump.

Characteristics Affecting Memecoin Performance:

While a gala dinner might generate positive buzz, it doesn’t change the underlying market forces or the speculative nature of the asset. The data suggests that for many top Crypto investors in TRUMP, the market reality has outweighed the positive optics of the event.

Understanding the Volatility for TRUMP Memecoin

The TRUMP memecoin’s journey since its January launch has been marked by significant price swings. Its value is intricately tied to political developments and the broader cryptocurrency market sentiment. While it has seen periods of rapid appreciation, often correlated with political milestones or endorsements, it has also experienced sharp downturns.

The report highlights that even those who invested relatively early might be underwater if they bought during specific peaks or failed to take profits during rallies. The $8.95 million in crypto losses among the top 95 holders is a testament to the power of market downturns, even for those with significant positions.

This volatility is a key characteristic of memecoins and political tokens. Investors are essentially betting on continued hype and positive sentiment, which can dissipate quickly. The exclusive dinner, while perhaps boosting morale for attendees, did not insulate their portfolios from the market’s movements.

Actionable Insights for Aspiring Crypto Investors

The situation with TRUMP memecoin holders provides valuable lessons for anyone considering investing in cryptocurrencies, particularly speculative assets like memecoins:

1. Hype is Not a Strategy: Don’t invest based solely on social media trends, celebrity endorsements, or exclusive events. Look beyond the hype.
2. Understand the Risks: Memecoins carry extremely high risk. Be prepared to lose your entire investment.
3. DYOR (Do Your Own Research): Understand what you’re investing in, its tokenomics (if any), and the potential factors influencing its price.
4. Risk Management is Crucial: Never invest more than you can afford to lose. Consider setting stop-losses or taking profits during pumps.
5. Diversification: Don’t put all your funds into one highly speculative asset.

Even top Crypto investors are susceptible to market downturns. Success in crypto investing requires careful consideration, risk management, and a realistic understanding of the assets you hold.

Conclusion: The Reality Behind the Gala

The report revealing that 43% of the top TRUMP memecoin holders are in the red, collectively losing $8.95 million, offers a sobering perspective. While an exclusive dinner with a former President might sound like the pinnacle of success for a token holder, the market’s performance tells a different story for many. The significant crypto losses, including a seven-figure loss for one major holder, highlight the inherent volatility and speculative nature of memecoins and political tokens.

This situation serves as a powerful reminder that in the fast-paced world of crypto, particularly within the memecoin sector, hype and high-profile events don’t override market dynamics. Memecoin performance remains highly unpredictable, and even the most prominent holders are not immune to significant financial setbacks. It’s a critical lesson for all Crypto investors about the importance of caution, research, and managing expectations when dealing with highly speculative digital assets like the TRUMP token.

Source: CryptoSlate

Source: finance.yahoo

Economists see slightly slower US inflation this year after the US and China reached a temporary trade agreement, which also helped reduce odds of a recession in the near term.

Forecasters in the May Bloomberg survey expect the personal consumption expenditures price index — the Federal Reserve’s preferred inflation metric — to peak at 3.1% at the end of 2025, a slight step-down from the 3.2% increase projected in April. They also marked down estimates for the consumer price index through early next year.

The median respondent now sees a 40% chance of a downturn in the next 12 months — down from a 45% estimate last month, but still much higher than the 30% expected in March. But forecasters also slightly trimmed their estimates for gross domestic product, and see a tepid 1.3% increase in 2025.

The Trump administration agreed to substantially lower tariffs on Chinese goods this month as officials work toward a possible trade deal between the world’s two largest economies. However, tariff rates are still notably higher now compared to before President Donald Trump took office, and lackluster consumer sentiment has corporate America worried about the outlook.

“Higher tariffs are set to weigh on growth and raise inflation, but are less likely to trigger a recession than feared last month,” said Comerica Bank economists Bill Adams and Waran Bhahirethan. “Tariffs do seem to have shifted economic growth into a lower gear, though.”

Helping the GDP print will be a bigger drop in imports — particularly in the current quarter, according to the survey. At the start of the year, imports surged by the most in almost five years as businesses scrambled to get goods in the US ahead of tariffs, which led to the first negative GDP reading since 2022.

Economists still largely expect household demand to hold up in the face of heightened uncertainty. They forecast consumer spending to rise 1.5% in the second quarter, up from a 1% estimate in April. Still, that’s seen slowing down later in the year.

The outlook for business spending is less optimistic. Economists see private investment falling 5.2% in the current quarter, worse than the 3% decline projected in April. They also revised those estimates down through the middle of next year.

“The US-China and US-UK trade agreements are steps in the right direction but uncertainties remain,” said Olu Omodunbi, chief economist at Huntington Private Bank. “We expect slower growth in consumer spending and investment this year, compared to 2024.”

The survey was conducted May 16-21 and included responses from 86 economists.

Source: Bloomberg Europe