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Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, said the recent slump in Bitcoin (CRYPTO: BTC), as the broader crypto market struggles a year into Donald Trump‘s presidency, may be driven by the rapid rise of speculative meme coins.
In an interview with Business Insider, published on Thursday, Gerber suggested that the introduction and subsequent popularity of Official Trump (CRYPTO: TRUMP) and the First Lady-themed Official Melania (CRYPTO: MELANIA) meme coins have made investors cautious of digital assets. He argues that these meme coins, often backed or introduced by celebrities, result in ordinary investors losing money while the celebrity promoters profit.
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He said that investors often jump into such tokens believing the hype, only to get burned, adding that the “money doesn’t come back,” and is effectively “stolen” from them.
He also pointed to other celebrity-backed cryptocurrencies, including a token launched by former New York City mayor Eric Adams and the $HAWK coin introduced by internet personality Haliey Welch, as additional examples of meme coins that have led to investor losses.
Gerber also criticized the Trump administration’s lax approach to crypto regulation, which he believes is making the market less attractive to everyday investors.
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Gerber’s criticism comes as Bitcoin has fallen nearly 50% from its October peak, dropping below its November 2024 level, with an early February sell-off triggering over $2.7 billion in liquidations, its sharpest decline since 2022, according to algorithmic trading firm Wintermute.
The downturn followed several macro catalysts, including Kevin Warsh‘s nomination as Fed chair, weak “Magnificent Seven” earnings and a correction in precious metals. Wintermute said capital has rotated heavily into AI-focused equities, leaving crypto underperforming in both market rallies and sell-offs, a trend typical of bear markets.
Over the past month, the Melania Trump-themed meme coin slumped 36.11%, while temporarily gaining momentum around the release of the Amazon MGM documentary, MELANIA, at the end of January. Meanwhile, the Trump memecoin declined 41.55% during the same period. The Trump family-backed World Liberty Financial (CRYPTO: WLFI) also shed 43.82% of its value over the past month.