Bitcoin made headlines on Monday as it soared to a new record high, surpassing $109,000, while the U.S. dollar took a dip. Investors are buzzing about what a second Donald Trump presidency might bring.
In the meantime, stock futures climbed higher, mirroring the uplift seen in Asian and European equity markets. By around noon Eastern Time, just after Trump took his oath, futures for major indexes were up by about 0.5%. It’s worth noting that U.S. stock and bond markets were closed in observance of Martin Luther King Jr. Day.
Bitcoin’s spike to an intraday high of $109,225, as tracked by a CoinDesk index, highlighted the day’s volatility. However, it soon slid back to just under $105,000 shortly following Trump’s inauguration.
Trump, who has taken a pro-cryptocurrency stance, has generated buzz with his promise to create a U.S. bitcoin reserve. Bitcoin’s value has jumped over 50% since his election.
In recent days, Trump and Melania have launched new cryptocurrencies named $TRUMP and $MELANIA. Critics were quick to voice concerns, arguing that these new tokens might pose some serious conflicts of interest.
Ahead of Trump’s official swearing-in, The Wall Street Journal noted that he is not planning to introduce tariffs on his first day—a relief to many trading partners who feared that move.
The dollar continued its downward trend, as the WSJ Dollar Index fell by 0.8% to hit its lowest point in nearly two weeks. Meanwhile, currencies from economies expected to suffer under tariffs saw gains. The British pound, euro, Mexican peso, Canadian dollar, and the offshore Chinese yuan each rose by 0.8% or more against the dollar as of midday.
Investors were on edge, anticipating a slew of executive orders from Trump spanning topics from border control to energy policies and government reforms.
According to Susannah Streeter, head of money and markets at Hargreaves Lansdown, the market reactions will become clearer once these executive orders are rolled out and their impacts are assessed. She pointed out how this could maintain market volatility, suggesting that while some fears may not come to pass, unexpected developments could arise.
U.S. stocks had a strong performance last week, fueled by impressive bank earnings and an inflation report hinting at easing pricing pressures. However, many investors are cautious, worried that Trump’s policy promises, particularly significant tariffs, might reignite inflation, impacting markets and Federal Reserve strategies.
In Asia, stock indexes saw upward movements on Monday. Trump had a phone conversation with China’s President Xi Jinping on Friday and has expressed interest in visiting China after taking office, according to reports. Adding to the positive mood, TikTok, owned by a Chinese firm, resumed service for its U.S. users on Sunday after a brief shutdown.
Hong Kong’s Hang Seng Index saw a 1.7% increase, and the Shanghai Composite also edged up. Over in Europe, the Stoxx Europe 600 ended less than 0.1% higher.
That said, Brent crude futures, the global oil benchmark, dropped over 1%, trading at just under $80 a barrel.
This week is packed with corporate earnings reports from giants like Netflix, United Airlines, Procter & Gamble, and American Express. Investors are also watching for interest-rate decisions from central banks in Japan, Norway, and Turkey.
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