The return of Donald Trump to the White House as the 47th President of the United States has sent ripples through the markets, with cryptocurrency prices soaring but oil prices plummeting.
In the crypto sphere, Trump’s inauguration has started a frenzy, with Bitcoin hitting a new all-time high of $109,900 on Monday morning. The world’s largest cryptocurrency has been climbing since Trump’s election, surging from around $70,000 in November to over $100,000 in just two months.
“You’re going to be very happy with me,” Trump told crypto-enthusiasts at a Bitcoin conference last year.
Trump himself has launched his own cryptocurrency, which sold for billions of dollars in just two days. The token, dubbed $Trump, was priced at around $6 but surged to as high as $75.35.
The Trump family’s meme coins have yielded billions over the weekend, with the total value of Trump’s token reaching over $14 billion before falling to around $10 billion by Monday morning.
“The cryptocurrency market witnessed a significant surge in volatility, reaching an all-time high of $3.72 trillion in total capitalization on Monday morning,” said Alex Kuptsikevich, the FxPro chief market analyst.
However, some have criticized Trump accusing him of taking financial advantage of his political position. But he has vowed to make the US the “crypto capital” of the world, promising to create a Strategic Bitcoin Reserve and enact industry-friendly regulations.
Trump’s picks for key cabinet and regulatory positions are stocked with crypto supporters.
Oil Price Move In Opposite Direction
In contrast, oil prices have declined due to Trump’s energy policies, which include boosting fossil fuel production and reversing offshore drilling bans.
The international benchmark Brent crude fell by 0.3% to $78.95 per barrel, while the US benchmark West Texas Intermediate (WTI) decreased by 0.9% to $76.59 per barrel.
An executive order signed by Trump moments after his inauguration on Monday sees shortcomings in US energy production as an “extraordinary threat” to the economic and national security of the US. It plans to boost fossil fuel production.
Trump also signed an order to harness Alaska’s natural resources and reversed bans on offshore oil and gas drilling imposed during Joe Biden‘s presidency.
Experts suggest that Trump’s policies could increase supply in the short term and support downward price trends. However, his promise to impose tariffs on goods from Mexico, Canada, and China has raised concerns about potential price increases in the US, leading to expectations of reduced oil demand and continued downward pressure on prices.
The US dollar’s strength against other currencies is also dampening market appetite, further affecting prices.
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