He’s back from an assassination attempt, the embarrassment of his supporters storming the US Capitol, potential jail sentences and other setbacks, to become the 47th president of the US.
And any stocks linked to him, as well as cryptocurrencies, have seen frenzied activity all day.
Bitcoin, the biggest crypto out there, has seen record highs of $75,000 per token. Trump has promised a strategic national bitcoin stockpile for the US government and wants to make America the “crypto capital” of the world.
Trump Media ($DJT), the shares of Trump’s social-media company Truth Social, have shot up by over 30%.
Tesla, run by Elon Musk, Trump’s biggest cheerleader, rose 14% – ahead of US markets reopening on Wednesday.
“We have a new star,” Trump said as the critical swing state of Pennsylvania was called for him. “A star is born: Elon.”
Musk spent considerable time, effort and millions in giveaways in the state, which the Republicans have managed to flip since it went to the Democrats in 2020.
US stock futures are rallying by more than 2%, with small-cap stocks topping the leaderboard. The US dollar has jumped by about 1.5% against other major currencies. The Russell 2000 ETF has soared 8% in premarket trading.
With Trump back in office, get ready for a friendlier tax landscape that could spark both sentiment and spending in the months to come. Lower taxes mean more cash in consumers’ pockets, which typically translates into more shopping, investing and overall confidence.
With the Federal Reserve also expected to cut interest rates on Thursday, the market could rise further this week.
First pro-crypto prez
As the reality of Web3 getting its first pro-crypto US President sunk in, shares of MicroStrategy, the tech company that’s one of the biggest holders of Bitcoin, spiked 13.26%.
Trump’s triumph is expected to remove regulatory clouds over crypto. His first act as the pro-crypto candidate, he said, was going to be firing Gary Gensler, the chair of the Securities and Exchange Commission, the self-appointed (it is so argued) cop of the crypto beat. Lawsuits brought by the SEC and other government institutions could be withdrawn.
Given the Republicans have flipped the Senate and are on course to winning the House of Representatives, this could be a GOP sweep, making legislation around the economy or crypto easier.
Other major cryptocurrencies like ETH, SOL and XRP skyrocketed even before Trump’s victory was declared, but none more than DOGE coin, the meme coin linked to Musk. It’s been rising, up more than 40% in the past month in anticipation, and continues to lead the major cryptos as the standout performer.
Musk also proposed an agency to make government spending efficient, the Department of Government Efficiency, which could be an acronym for DOGE, like the token.
In stark contrast to Trump’s near-wholesale promises, Kamala Harris made a vague pledge to the crypto ecosystem of putting in place a regulatory framework, while protecting customers.
The victory has also established Polymarket, the crypto betting site, as a reliable predictor of major events, particularly in comparison to polls, which haven’t been entirely accurate.
