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.
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.
Crypto Slump Amid Broader Negativity
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.
Other popular meme coins like Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) were also in freefall, further indicating the volatility of these digital assets.
Split Views On Trump’s Crypto Agenda
Mark Yusko, CEO of Morgan Creek Capital Management, said Trump has a different crypto agenda centered on maintaining dollar dominance, predicting Bitcoin could bottom between $58,000 and $63,000 in September. He also warned that the current version of the Clarity Act is a “non-starter” that risks pushing crypto toward CBDCs, centralization, and greater control.
On the other hand, Anthony Scaramucci, a sharp critic of Trump’s tariffs and foreign policy, praised the president’s efforts to liberalize the crypto industry, saying his administration is “far better” for digital assets than alternatives under Joe Biden or Kamala Harris. He has also argued that Trump’s policies could be a win-win for Bitcoin and welcomed progress on crypto and stablecoin legislation.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
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