Trump shocked the world through his Truth Social and X (formerly Twitter) accounts, officially announcing the launch of his Meme coin TRUMP (Trump Coin).
Within just 12 hours of the announcement, the market capitalization of 'Trump Coin' soared to $30 billion, surpassing established cryptocurrencies such as Tron, Avalanche, Chainlink, and Shiba Inu. Consequently, the prices of Ethereum and Bitcoin dropped overnight.
The global financial market is entering a new era:
1. The trends of mainstream currencies such as Ethereum and Bitcoin will enter a chaotic period. 'Trump Coin' has surged in the short term, demonstrating extremely high market enthusiasm. However, this growth is likely driven by speculative sentiment rather than the actual utility or long-term value of the token itself. Its long-term value will depend on the actual utility of the underlying project, market acceptance, and the evolution of regulatory policies.
2. The initial impact of this news might be limited to the cryptocurrency sector, but it has truly brought a huge 'shock' to investors. Trump's tariff policy may also be introduced in unexpected ways, prompting some cautious investors to consider liquidating their positions.
3. Trump Coin will become an indicator closely monitored by Wall Street: As President, every major policy of Trump's (especially decisions related to the economy, trade, and cryptocurrencies) could directly influence the market performance of Trump Coin. For example, if Trump announces tax cuts or cryptocurrency-friendly regulations, the market may respond positively to Trump Coin, and vice versa.
4. From a strategic perspective, Trump's launch of 'Trump Coin' before taking office seems to have greater ambitions—making it an indicator of interest among traders, with correlations to markets such as US stocks, US bonds, the US dollar, and gold. The short-term prospects of 'Trump Coin' depend on Trump's policy agenda, and once it correlates with global mainstream markets, its impact could be immeasurable. This is not only a business attempt but could also be a bold experiment to disrupt traditional financial markets—linking political figures with highly volatile assets.
Trump Coin may become a special market tool, serving both as a betting tool on Trump's policies and possibly acting as a safe-haven asset in certain scenarios (similar to gold).
The fluctuations or trading volume of Trump Coin can serve as a barometer for market sentiment. For instance, when the market has optimistic expectations about Trump's policies, Trump Coin may perform strongly; conversely, its price may drop when uncertainty increases.
Once its trading volume is sufficiently large, the fluctuations of Trump Coin could even impact the prices of traditional assets (such as US stocks or gold), especially in situations where market sentiment is highly aligned or liquidity is low.
If Trump Coin can expand its application scenarios, such as international payments or serving as a medium for commodity trading, its global influence will further increase.
Now this is a test of Trump's influence on the cryptocurrency market, and in the future, it will be a test of influence on the global market.
For deeper insights into the global market, feel free to subscribe (Global Market Strategy: Level One Alert). What will happen on Trump's first day in office? Will the US dollar and Treasury yields turn downward? What will be the fate of A-shares and US stocks? Here you will find answers.
Report Highlights:
1. Today we released the (Fear and Greed Index Report: A Flood of Signals), a significant trend is brewing. After this week's close, most markets, including the US dollar, Chinese yuan, gold, euro, Chinese government bonds, A-shares, Kweichow Moutai, US stocks, FTSE China A50, and crude oil, showed important signals.
2. While the world is in confusion, we have unraveled the answers to three key questions:
Firstly, almost everyone has started to be bullish; is the US dollar overvalued?
Secondly, have US Treasury yields receded, and has the storm in the bond market been resolved?
Thirdly, will there be a crash in the US stock market? Is it time to buy the dip?
3. We have clearly identified the timing of the next major shift in the global market and revised our forecasts for the US dollar, US stocks, US bonds, gold, and crude oil in 2025, providing investors with more forward-looking references.
4. Will the Chinese yuan depreciate significantly? We have identified a third possibility.
