The US Dollar remained on the defensive, adding to Monday’s pullback as further market chatter around US tariffs failed to underpin the initial bullish bias in the currency.
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The world of finance and cryptocurrency collided this
week as investment managers Rex Shares and Osprey Funds filed paperwork for a
series of exchange-traded funds (ETFs) focused on digital assets, including the
headline-grabbing Trump Coin.
$TRUMP experienced a staggering $20 billion in trading
volume over the past 24 hours, marking a 48% decline. The meme token has soared
more than 500% in the past week.
A Presidential Memecoin
Launched by President Donald Trump just days before
his inauguration, the TRUMP coin has captivated investors with its high
volatility and political overtones.
Its fully diluted valuation hit $80 billion within 24
hours of launch, sparking a frenzy that even congested the Solana network.
Despite the buzz, memecoins like TRUMP and MELANIA (issued by First Lady
Melania Trump) hold no intrinsic value, relying purely on speculative trading.
The REX-Osprey TRUMP ETF would be the first fund to
track the performance of the TRUMP coin, offering institutional investors
exposure to its price movements.
According to filings with the SEC, the ETF plans to
allocate at least 80% of its net assets to the coin and related derivatives.
Although there remains uncertainty about the value of such funds, proponents
argue they provide a structured way to access emerging digital trends.
This wave of filings extends beyond the TRUMP coin. Rex
Shares and Osprey Funds also proposed ETFs for other memecoins, including
Dogecoin and BONK, as well as more established assets like Bitcoin and
Ethereum.
My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC
— Donald J. Trump (@realDonaldTrump) January 18, 2025
Regulatory and Market Uncertainty
While Trump’s administration signals a potential
softening of crypto oversight, questions remain about whether regulators will
approve memecoin ETFs.
The SEC’s cautious stance on cryptocurrency under
former Chair Gary Gensler slowed progress for Bitcoin and Ethereum ETFs.
However, with President Trump promising to turn the U.S. into a “crypto
capital,” the regulatory landscape may shift.
Whether memecoins like TRUMP will secure a place in
institutional portfolios depends on regulatory decisions and market dynamics.
For now, the memecoin craze highlights the unpredictable intersection of
politics, finance, and digital assets.
This article was written by Jared Kirui at www.financemagnates.com.
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Gold rallied more than 1% and hit a two-month high of $2,745 on Tuesday as investors seeking safety bought the non-yielding metal following US President Donald Trump’s remarks on tariffs.
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The US Dollar Index (DXY) trades just above 108.00 and flips into losses if more selling pressure arises.
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Wall Street Journal (gated) on the US – Mexico – Canada (USMCA) trade deal:
***
This latest news from the Journal re tariffs not moving the USD much at all.
This article was written by Eamonn Sheridan at www.forexlive.com.
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Inflation data is due from New Zealand today, for Q4 2024. Its expected to have dribbled just a touch lower, which should keep the Reserve Bank of New Zealand easing cycle on track. If it surprises to the topside its likely to provide a tailwind for the kiwi $.
This article was written by Eamonn Sheridan at www.forexlive.com.
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The GBP/USD moved lower during the Asian and European sessions but found support near the converged 100- and 200-hour moving averages (MAs). Sellers turned into buyers at this critical area, and the pair began to rotate back to the upside. The upward momentum has now pushed the price toward the 50% retracement level of the decline from the January high to the January low, located at 1.2337.
A break above this midpoint would bring the next key resistance into focus: the 100-bar MA on the 4-hour chart, currently at 1.2352. Notably, this MA previously stalled a rally on January 7, underscoring its significance today and in the days ahead. A sustained move above this level would signal further bullish potential.
Beyond that, traders would target the 38.2% retracement of the larger decline from the December high, which sits at 1.2369. This level represents another critical resistance point that would need to be cleared to reinforce a stronger bullish bias. For now, the focus remains on whether buyers can maintain momentum above these progressively important resistance levels.
This article was written by Greg Michalowski at www.forexlive.com.
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It has become apparent over the years how the political scene can have a massive impact on how the crypto space is able to operate and how well it can perform. A prime example of this has been with the Securities and Exchange Commission in the United States and its dynamic relationship with the crypto sector.
On the one hand, the SEC approved spot ETFs for two different crypto assets last year. On the other hand, it has gone after some of the biggest companies in the space and many believe that it antagonizes the industry as a whole. Naturally, as the leadership of the SEC is about to change, the market is reacting.
The Timeliness of This Change
Currently, the SEC is headed by Gary Gensler, who has announced that he will be resigning once incoming president Donald Trump takes office. Famously, Trump has promised to fire Gensler while on the campaign trail and the outgoing chair has been a controversial figure in crypto spaces. The new SEC chair will be Paul Atkins, a former SEC commissioner who has said that things will be different under his watch.
A statement from Atkins’ lawyers said, “Under his leadership, the SEC may move away from aggressive tactics that prioritize headline-grabbing penalties over substantive outcomes.” Many took this to mean that there would be less hostility towards the industry and more collaboration.
This comes at an interesting time as crypto has never been more successful or mainstream. Bitcoin finally crossed the coveted $100,000 price point, spot ETFs are finally a reality, and more tokens are entering the market than ever before. As crypto analyst Carlos De Lanuza highlights, a look at fresh Coinbase token releases this month will show that there has never been a better time to be in crypto. It also means that there is no better time for an overhaul of regulation. And as this approaches, the market is certainly reacting.
How Bitcoin is Reacting
Bitcoin had been seeing declines in the last few days though has now rebounded on the inauguration of Donald Trump. While some investors are concerned about this trajectory, others believe that a rebound is imminent thanks to the incoming SEC chairman. The way they see it, market sentiments with significantly improve once a more pro-crypto candidate takes office and this will reflect in the Bitcoin price.
There is also the matter of the Trump administration, which has aggressively courted the crypto sector since last year. From rubbing shoulders with the industry elite to putting out a line of Bitcoin sneakers to hinting a Bitcoin being used as US government reserves, the incoming Trump term could do a lot for the industry.
As such, temporary market setbacks are seen as small bumps in the road compared to the gains to be made in the future. And, apparently, these benefits will extend beyond just Bitcoin.
Will XRP Get an ETF?
When the Bitcoin (and later the Ether) spot ETF was first announced, there was speculation about which token would next get the same treatment. After all, a spot ETF is a sure way to get millions, if not billions, of dollars in investment, as well as higher visibility and credibility. While virtually every major token has been considered, XRP is the latest.
This comes via a recent statement from Monica Long, the President of Ripple, the parent company of XRP.
“I think we will see one very soon. I think that we will see more crypto spot ETFs this year coming out of the US, and I think XRP is likely to be next in line after bitcoin and ether,” Long said.
It would make sense as XRP is one of the top tokens by market cap and is renowned for its use in cross-border transactions. Ironically, Ripple Labs has been one of the crypto companies most antagonized by the SEC. In fact, Ripple is still locked in a legal battle with the SEC, which claims that XRP is a security. If this ETF dream comes true, it could signal an end to the company’s long-running legal battles with regulators.
Conclusion
The SEC is about to witness a major leadership shakeup that will impact not just it but the entire crypto sector. In the best-case scenario, the combative relationship between the commission and the crypto industry will be quelled and further progress can be made in regulation and promoting the sector. If all these happen, we can look forward to a new era of crypto-related growth for all.
This article was written by FM Contributors at www.financemagnates.com.
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I spoke with BNNBloomberg on Monday about the early takeaways of the Trump administration and his first executive orders. The news so far made me slightly more optimistic that we will get a repeat of Trump 1.0 and not some new President hell-bent on growth-destroying tariffs.
BNN got my title wrong but I managed to touch on some important messages anyway.
This article was written by Adam Button at www.forexlive.com.
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The Canadian Dollar (CAD) went end-over-end on Tuesday, whipsawing as Loonie traders grapple with a mixed bag of political headlines and inflation data that strongly implies more rate cuts are on the table.
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The Pound Sterling (GBP) surrenders its marginal gains against its major peers on Tuesday in the aftermath of the United Kingdom (UK) labor market data for three months ending November.
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