Bitcoin subsides after Trump’s inauguration, while gold stay resilient

Bitcoin fell to $100,000, retreating from its all-time high of $109,000, following the inauguration of U.S. President Donald Trump. Meanwhile, gold prices continued their upward trajectory, surpassing $2,700 per ounce.

Despite the volatility caused by profit-taking, market analysts anticipate Bitcoin prices may rebound because of Trump’s anticipated steps regarding cryptocurrency regulations. However, the lack of immediate action on crypto policies during Trump’s first day in office has drawn criticism.

Notably, during Trump’s initial presidency in 2017, Bitcoin surged by 300%, reaching $2,800.

At 12:10 p.m. GMT, Bitcoin stands at $103,690, with a more than 2.40% decline in a day, according to investing.com.

Trump’s inauguration rushed gold purchases

Gold prices rose on Tuesday, bolstered by a sharp overnight decline in the dollar, as traders weighed the potential implications of Trump’s policies following his inauguration.

Spot gold increased by 0.55%, trading at $2,723 per ounce as of 1210 GMT. Meanwhile, the U.S. Dollar Index dropped over 1% to 107.73, hitting a nine-day low during Trump’s inauguration speech before rebounding to 108.57.

Gold traders are preparing for heightened market volatility as Trump’s second term begins, with his anticipated policy announcements expected to influence the dynamics of global markets.

The precious metal, traditionally regarded as a safe-haven asset, has maintained its value above a one-month peak.

Market sentiment is currently being shaped by the interplay between potential U.S. policy changes and the Federal Reserve’s monetary strategy.

Trump’s pledge to impose new trade tariffs on neighboring countries and China aimed at reducing the U.S. trade deficit could strengthen the dollar, potentially affecting gold prices.