Bitcoin has risen more than 30% since President Trump’s victory, while gold has fallen about 5% as the trend shifts to digital assets.
Bitcoin surged above $91,600 last week and hit a new record of $93,000 as investors sought to ease cryptocurrency regulations and pour money into the digital currency.
Other cryptocurrencies, including Dogecoin, the “meme coin” owned by Trump’s friend Elon Musk, are up 152%.
Ethereum is up 21.7% in a month, Solana is up 36.4%, Tether is up 1.98%, and crypto-related stocks like Coinbase and Microstrategy are also strong.
Gold has weakened somewhat and is currently in bearish territory over the medium-term as its safe-haven status fades as the U.S. dollar strengthens. Similarly, the currency lost 3.2% of its value quarter-on-quarter. On November 12, Bitcoin ETFs saw their biggest trading volume since January, with nearly $2 billion in just two days. The dollar, as measured by the DXY index, rose 2.7% to reach a one-year high of 106 points.
As the Federal Reserve eases policy to combat deflationary pressures, changes in monetary policy could force the Fed to change policy. If Republican policies lead to inflation, the Fed will be forced to halt the expansionary cycle or even consider raising interest rates. Reversing policy could push the dollar even higher and further pressure gold.
During the campaign, President Trump openly embraced free cryptocurrency, promising to make the United States the “cryptocurrency capital of the world.”
Trump, once a crypto skeptic, changed course after digital asset companies invested heavily in protecting their profits during the campaign.
At a Bitcoin conference in early July, Trump promised to control the U.S. government’s existing Bitcoin holdings and confirmed that he would make sure the government would not sell its holdings. “For too long, our government has violated a basic rule that every Bitcoin enthusiast knows very well: Don’t sell your Bitcoin,” Trump said in his opening remarks.
At the same meeting in Nashville, President Trump also promised to create a government-owned Bitcoin warehouse and spoke about why Bitcoin mining should be brought to the United States.
