Trump Skips Crypto on Day One

Trump Skips Crypto on Day One

Donald Trump completed his first day as the 47th President of the United States without addressing cryptocurrencies, despite prior speculation. His inaugural address and initial executive actions, which included signing 42 orders, memoranda, and proclamations, focused on his “America First Priorities,” omitting any mention of Bitcoin or crypto-related policies.

Crypto advocates had anticipated Trump would prioritize digital assets on day one, potentially through an executive order establishing a crypto council or addressing a central bank digital currency. Reports had also suggested actions related to crypto de-banking and establishing a strategic Bitcoin reserve. However, these expectations remain unmet.

The crypto market reflected the lack of focus. Bitcoin fell nearly 6% from its all-time high of $109,000, while Trump-related memecoins, including his official TRUMP token and Melania’s MELANIA coin, saw significant declines. Meanwhile, Trump introduced the Department of Government Efficiency (DOGE), led by Elon Musk, signaling a focus on cutting federal spending.

TikTok Ban Fuels Chinese App Surge

The recent TikTok ban drama in the U.S. has fueled interest in Chinese-made social apps, notably Xiaohongshu (RedNote). Over 2 million Americans flocked to the platform in just two days after the Supreme Court suggested upholding a TikTok ban. Stocks like Hangzhou Onechance Tech and Yantai China Pet Foods surged, driven by optimism around new U.S. users embracing Chinese goods.

Xiaohongshu topped Apple’s download charts and climbed into Google Play’s top 10. Analysts see this as a boost for Chinese consumer brands. “American users bring tremendous potential, enriching Xiaohongshu’s ecosystem,” noted Zhao Zhongping of Sinolink Securities.

Despite Trump delaying TikTok’s enforcement for 75 days, the uncertainty surrounding its future has led to increased U.S. interest in alternative Chinese platforms. Language app Duolingo reported a 216% spike in Americans studying Mandarin, reflecting the growing cross-cultural curiosity.

While TikTok’s fate hangs in the balance, the rising influence of Chinese platforms like Xiaohongshu may mark a long-term shift.

Europe Risks Falling Behind Globally

European business leaders warned on Tuesday that the region risks falling behind its U.S. and Asian counterparts without immediate innovation and deregulation. CEOs noted that the fast-changing global landscape, compounded by anticipated shifts during President Donald Trump’s second term, poses significant challenges to Europe’s economic competitiveness.

Zurich Insurance CEO Mario Greco, speaking at the World Economic Forum in Davos, described Europe as “always lagging behind” in areas like artificial intelligence and digital innovation. “This is a wake-up call for Europe. We must invest in new technologies to drive growth,” Greco stated. He also criticized Europe’s regulatory focus, which he argued stifles progress.

Trump's "America First" policies, including potential tariffs on European goods, further highlight the urgency for Europe to boost competitiveness. CEOs like Novartis’ Vas Narasimhan emphasized the need for Europe to embrace pro-innovation policies and deregulation to remain relevant on the global stage.

Belgian Finance Minister Vincent Van Peteghem echoed these concerns, urging Europe to address its productivity gap and simplify regulations. ING CEO Steven van Rijswijk stressed the need for investments in infrastructure and technological autonomy, while Banco Santander’s Ana Botín called for frameworks to support startups and prevent talent from migrating to the U.S.

Without action, Europe risks falling further behind.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.