Global stock markets surged on Monday, with both European and Asian indices seeing strong gains, as Bitcoin reached an all-time high above $109,000. The market rally coincided with Donald Trump’s preparations to take office for his second term as president of the United States. The dollar weakened by over one percent against both the euro and the pound, following reports from The Wall Street Journal that Trump would not impose tariffs immediately upon his inauguration, signaling a potential shift in trade policies.
The euro gained to $1.0404 and the pound rose to $1.2302, while oil prices also fell, with West Texas Intermediate dropping 1.7 percent. Trump’s economic stance, including plans to deregulate sectors such as cryptocurrency and impose changes to the tax and spending framework, has created a sense of both optimism and caution in the markets. Though his re-election campaign promised aggressive tariffs, his administration’s approach appears to be moderating.
Meanwhile, Bitcoin’s record-breaking performance was fueled by Trump’s plans to deregulate the cryptocurrency sector. His new cryptocurrency, the $TRUMP coin, further ignited market speculation, pushing its market cap to billions. Despite uncertainties surrounding his policies on inflation, trade, and regulation, positive signals from talks with Chinese President Xi Jinping have alleviated some concerns, boosting market sentiment. The surge in stock indices, such as Frankfurt’s DAX and London’s FTSE 100, reflects investor confidence in the new administration’s approach.
