After Donald Trump got into a viral televised argument with Ukrainian President Zelensky at the Oval Office, meme coins TRUMP and MAGA spiked in value. MAGA was among the initial meme coins themed after Trump, and this is its first upward movement in over a month.

It’s impossible to determine exactly what caused traders to push MAGA up by nearly 10%, but it provides an interesting window into the meme coin space.

Meme Coins Spike As Trump and Zelensky Fall Out Publicly

Donald Trump had a dramatic impact on the meme coin space when he launched his own token, but some things never change. Earlier today, Trump hosted Ukrainian President Volodymyr Zelensky at the White House to discuss resolving the ongoing war. Things did not go according to plan, however, and a televised argument ensued:

“We’re trying to solve a problem. Don’t tell us what we’re gonna feel. Because you’re in no position to dictate that, remember this. You’ve allowed yourself to be in a good position, you don’t have the cards right now. You’re gambling with the lives of millions of people. You’re gambling with World War III!” Trump said as the dispute got out of hand.

The media cycle has been abuzz with commentators discussing this argument and its potential fallout on US-Ukraine relations and the war.

Already, some Senators are calling the meeting “a complete and utter disaster,” questioning whether Trump and Zelensky can do business ever again. However, an unexpected event happened in crypto, as TRUMP jumped up 8%:

TRUMP, the President’s official meme coin, has been on a steady decline this month. It briefly rebounded in the middle of February, helped out by a new airdrop, but it otherwise remained limp.

However, its rebound is not the most important factor to consider. MAGA, an unofficial Trump-themed token, jumped nearly 10% after the Zelensky interview.

MAGA is a completely unofficial product, bearing no affiliation whatsoever with Trump or any of his associates. It spiked a few times during the election but fell off after his victory and dropped nearly 100% after the official meme coin launched.

US Political Developments Are Now Impacting the Meme Coin Market

Understandably, Trump’s fans would rally behind him after the talk with Zelensky. These price reactions show an interesting glimpse into the mind of a meme coin trader, particularly a Trump supporter.

Are these buyers expecting it to be a sensible investment? Or are they simply trying to make a public gesture of faith for their favorite politician? It could even be a cynical move, hoping to create a pump while this story dominates the headlines.

Ultimately, due to their names, it’s almost impossible to easily search for either one of these tokens on social media. Therefore, assigning a concrete motive is speculative.

However, Vitalik Buterin previously feared that political meme coins could be used for corruption, and new proposals at the Congress echo this sentiment.

Even if politicians are banned from creating or endorsing meme tokens, enterprising individuals may keep creating them all the same.

Bitcoin ETFs saw a record $2.7 billion in outflows this week, signaling an impending bear market. Corporate Bitcoin holders are feeling the pain, and liquidations are spiking all across the crypto industry.

Additionally, the Federal Reserve Bank of Atlanta predicted that the US GDP would decrease by 1.5% in Q1 2025, fueling further economic pessimism.

Is Bitcoin Heading for a Bear Market?

The US spot Bitcoin ETF market, which grew so quickly in its first year, is seeing massive outflows. Earlier this week, it hit a new record for outflows, approaching $1 billion. Now that we have most of the week’s data, it reflects the growing concerns among institutional investors.

Over the past week, Bitcoin ETFs had $2.7 billion in net outflows, a troubling sign of a bear market. For comparison, this is the largest weekly net outflow since March 2024.

Fears of a bear market are gripping the entire crypto space, even hitting corporate Bitcoin holders. Strategy (formerly MicroStrategy) recently spent nearly $2 billion on BTC, and this didn’t help its stock price.

Today, trade data shows that it has fallen 57% since last November. Metaplanet fell 54% from its peak, and Tesla has been falling too. All these firms hold huge amounts of Bitcoin.

Bitcoin may be feeling the brunt of this potential bear market, but liquidations are spiking all across the crypto sector. According to the latest data, nearly $1 billion was liquidated in the last 24 hours. Traders are currently showing Extreme Fear, the lowest level since the 2022 FTX collapse.

A few prominent figures are looking at the brighter side. Michael Saylor urged the community not to panic sell, telling his followers to “sell a kidney if you must, but keep the Bitcoin.”

Arthur Hayes, former CEO of BitMEX, amended his recent prediction that BTC will drop and bounce back. However, he maintains that Bitcoin will rebound after a bear market.

“We are making lower lows in this current wave. I was tempted to add risk this morning, but looking at this price action I think we have one more violent wave down below $80,000, most likely over the weekend, then crickets for a while. Hold on to your butts!” Hayes claimed via social media.

Dark economic portents have been present for a few days now, and a market correction seems inevitable. This afternoon, the Federal Reserve Bank of Atlanta claimed that the US GDP is on track to decline by 1.5% in Q1 2025.

Even a disproven rumor could cause a lot of problems. Overall, the current macroeconomic factors point towards a short-term bearish cycle for Bitcoin and the entire market.

The crypto market has suffered a massive downturn, wiping out $160 billion in total market capitalization over the past 24 hours. This sharp decline has caused PI to shed 24% of its value.

However, technical indicators suggest that a rebound could be on the horizon for the popular altcoin. 

PI’s Market Decline Shows Signs of Seller Fatigue 

PI’s hourly chart reveals that its Relative Strength Index (RSI) is near the oversold territory, signaling that selling pressure may be reaching exhaustion. As of this writing, this momentum indicator is downward at 31.36.

An asset’s RSI measures its overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a retracement. On the other hand, values under 30 suggest that the asset is oversold and may witness a rebound.

At 31.36, PI’s RSI signals that the token is nearing oversold territory. This suggests weakening selling pressure and the potential for a price rebound if buyers step in.

In addition, PI’s price just broke below the lower line of its Bollinger Bands indicator, confirming sellers’ exhaustion. This indicator is a volatility marker consisting of a middle-moving average line and two outer bands that expand and contract based on price fluctuations. 

When an asset’s price breaks below the lower band, it signals that it is oversold and trading at an extreme deviation from its average price. If buying pressure increases, this can indicate a possible rebound or trend reversal.

PI Teeters at Crucial Level—Breakout or Breakdown Ahead?

A resurgence in PI demand could trigger a rebound toward its all-time high of $3, which was reached on Thursday. This represents a 44% uptick from its current value of $2.08. However, for this to happen, PI must first break above the resistance formed at $2.56.

Conversely, if the downtrend continues due to a lack of new demand for PI, its price could plummet toward $1.62.