Bitcoin hit a new high above $109,000 and the U.S. dollar fell on Monday as investors pondered the implications of a second Donald Trump presidency.
Stock futures rose, following gains in equity markets in Asia and Europe. At around 12:05 p.m. ET, shortly after Trump’s inauguration, contracts linked to the major indexes were up about 0.5%. U.S. stock and bond markets were closed Monday to mark Martin Luther King Jr. Day.
Bitcoin hit $109,225, an intraday record. according to a CoinDesk indexbefore stepping back. It was trading below $105,000 shortly after Trump was sworn in.
Trump has positioned himself as a champion of cryptocurrency, promising actions such as establish an American bitcoin store. Since his election, bitcoin has surged more than 50%.
The president-elect and his wife, Melania, started selling new cryptocurrencies in recent days, meme coins named $TRUMP and $MELANIA. The projects quickly drew disapproval, with some critics saying the tokens created significant conflicts of interest.
Before the inauguration, The Wall Street Journal reported that Trump does not plan to impose tariffs. on his first day in office – a scenario that many business partners feared.
The dollar extended its losses, with the WSJ dollar index sliding 0.8% to its lowest level in nearly two weeks, while currencies of economies expected to be hit hard by tariffs strengthened. By midday, the British pound, euro, Mexican peso, Canadian dollar and Chinese offshore yuan had each gained 0.8% or more against the dollar.
Investors were preparing for Trump issue a series of decrees hours after becoming president, covering border control, energy and government overhauls.
“Once these decrees start to be passed and their implications analyzed, that’s when you will see an influence on the markets,” said Susannah Streeter, head of currency and markets at Hargreaves Lansdown.
This will likely keep asset prices volatile, Streeter said. “Some of the worst fears may not materialize; on the other hand, there might be an unexpected movement.
US stocks created big gains last weekfollowing strong banking profits and an inflation report suggesting underlying price pressures ease. But many investors are bracing for possible turmoil, fearing that Trump’s promised policies, including high tariffs, could re-accelerate inflation, with far-reaching consequences for markets and markets. Federal Reserve Policy.
