Trump's Inauguration: The Collision of Wealth and Power

CN
8 hours ago

The inauguration of Trump took place on January 20th, U.S. time. His inauguration was not only a political event but also a historic moment where the world's top billionaires intersected with the cryptocurrency market. This gathering of billionaires, with a total asset exceeding $13 trillion, not only showcased support for the new president but also signified global capital's confidence in future economic policies. More notably, this ceremony ignited a frenzy in the cryptocurrency market, with a series of events highlighting the deep interaction between policy and capital.

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Symbol of Power and Wealth: The Collective Appearance of Billionaires

Trump's inauguration became a "circle of friends" gathering for global billionaires, including legendary figures from the technology, luxury, and finance sectors.

Celebrity Gathering:

  • Elon Musk: Founder of Tesla and SpaceX, leading the era with his dedication to sustainable energy and space exploration.
  • Jeff Bezos: Founder of Amazon, a pioneer of the e-commerce revolution.
  • Bernard Arnault: Head of LVMH Group, whose luxury empire symbolizes the pinnacle of modern capitalism.
  • Rupert Murdoch: Media mogul shaping public opinion through conservative media.
  • Tim Cook: Leader of Apple, a spokesperson for innovation and environmental protection.

The power behind these names not only determines business rules but also shapes the global economic landscape.

Why Did the Billionaires Come?

The appearance of these business giants was not only a show of support for the new president but also an indication of their attention to the direction of future economic policies. Trump had repeatedly stated during his campaign that he would boost the U.S. economy through tax cuts, deregulation, and support for emerging technologies (including blockchain and artificial intelligence). The participation of billionaires indicates their high expectations for these policies, especially regarding technology-driven economic growth.

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From Ceremony to Celebration: Political and Economic Signals in the Inauguration

On the day of the ceremony, the Trump couple participated in a morning prayer, symbolizing their devotion to the new journey. The presidential oath taken at the Capitol marked the formal completion of the power transition. These solemn rituals reflect democratic traditions, but the deeper significance lies in the policy signals conveyed through the presidential speech.

Trump's speech reaffirmed his commitment to the "America First" policy, mentioning that "economic prosperity will be driven by innovation" and emphasizing support for emerging technology industries like blockchain. This statement undoubtedly set the stage for the market's reaction that day.

On the day of the inauguration, the cryptocurrency market experienced significant fluctuations. Bitcoin's price soared to a record $109,000 the day before, while trading volumes for major assets like Ethereum and AAVE also hit new highs. This phenomenon was not coincidental but a direct response from the market to expectations of Trump's policies.

Interaction Between Billionaires and Policy: A New Driving Force in the Cryptocurrency Market​​​​​​​

At Trump's inauguration, some billionaires with direct ties to blockchain and cryptocurrency were particularly noteworthy. For example:

  • Elon Musk: As the "unofficial spokesperson" for Dogecoin, his tweets have repeatedly triggered market fluctuations.
  • Jeff Bezos: Amazon is rumored to soon accept cryptocurrency payments, which, although unconfirmed, has significantly raised market expectations.
  • World Liberty Financial: A decentralized finance platform closely related to the Trump family, made substantial purchases of various cryptocurrencies just before the ceremony, leading to a surge in sales of its governance token WLFI within days.

The Trump administration's attitude towards cryptocurrency could have far-reaching implications. During the campaign, he stated that "cryptocurrency helps enhance financial inclusion" and hinted at supporting this emerging industry through regulatory reforms. The market generally expects that Trump may promote:

  1. Tax incentives: Reducing the tax burden on cryptocurrency transactions and investments to attract more institutional investors.
  2. Easing industry regulations: Reducing restrictions on blockchain startups to encourage innovation.
  3. Digital dollar initiative: Promoting the development of a national digital currency to coexist with private cryptocurrencies.

The potential for these policies has become a significant driving force behind the cryptocurrency market's enthusiasm.

The Rise of Memecoins: The Trump Family's Innovative Experiment

The Trump family launched memecoins—Official Trump (TRUMP) and Official Melania (MELANIA)—just before the inauguration. This move not only captured the attention of young investors but also marked another wave of high-risk digital assets.

The rise of memecoins has sparked enthusiasm among retail investors but also brought controversy due to their high volatility and speculative nature. The Trump family's attempt may become a template for future political and business figures to experiment with digital assets, but it also requires caution regarding the potential risks of an overheated market.

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Long-term Impact: The Linkage Effect Between Policy and Capital

How will Trump's policies change the cryptocurrency market? Here are several potential long-term trends:

1. Capital Inflow and Market Expansion

If the Trump administration implements loose tax and regulatory policies, the cryptocurrency market may welcome a new wave of capital inflow. This would not only include individual investors but could also attract more institutional funds, rapidly expanding the market size.

2. Technological Innovation and Intensified Competition

Policy support will encourage more companies to invest in blockchain technology research and development, accelerating technological iteration in this field. However, this may also trigger global competition, especially in the technological race with countries like China.

3. New Challenges to Financial Stability

The expansion of the cryptocurrency market may put pressure on the traditional financial system, such as cross-border capital flows and the weakening of monetary policy effectiveness. This requires the government to find a balance between supporting innovation and maintaining stability.

Conclusion: An Anticipated and Unknown Future

Trump's inauguration was not only a peaceful transfer of political power but also a gathering of capital and technology. The collective appearance of these billionaires, along with the positive response from the cryptocurrency market, reflects expectations for the new government.

In the next four years, will Trump's policies meet market expectations? How will cryptocurrency play a more significant role in the new round of technological revolution? The answers to these questions will shape the next decade of the global economy.

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