😅 TikTok got a reprieve

What’s going on here?

Bitcoin reached a record high of $109,000 ahead of Monday’s inauguration, but that wasn’t the only presidential launch winning crypto traders’ votes.

What does this mean?

Donald Trump has made his support of digital coinage clear, saying the US would become “the crypto capital of the planet” if he returned to office. And with many traders hoping for supportive regulations, bitcoin’s price has largely been on the up since the election. Perhaps inspired by the momentum, Trump took a more active role in the market over the weekend, launching his own meme coin (a type of cryptocurrency inspired by an internet trend). And it looks like he wasn’t alone in wanting to celebrate the inauguration: the $Trump coin quickly became one of the world’s 20 biggest cryptocurrencies, boasting a market capitalization of over $70 billion on Sunday.

Why should I care?

For markets: Couples that meme coin together…

Incoming first lady Melania Trump launched her $Melania coin soon after the $Trump debut – and it took off too, landing a market capitalization of around $13 billion. But remember, smaller coins are notorious for volatility. Case in point: the price of $Trump more than halved when $Melania launched, as traders sold one to buy the other. Bitcoin, meanwhile, is still by far the biggest digital asset with a market value above $2 trillion. Plus, it’s a more stable investment in the infamously rickety realm.

The bigger picture: Every coin has two sides.

Bitcoin might be breaking records now, but investors in crypto and beyond are wary that future policies could end the party. Proposed tariff hikes – if they happen – are likely to fire up inflation across the US. And if that pesky reading does shoot higher again, interest rates may be held steady or – brace yourselves – be pushed even higher, potentially rocking the boat for a whole host of assets.

What’s going on here?

TikTok pulled off its greatest trick yet: the short-form video app reappeared on US devices mere hours after it was banned in the country.

What does this mean?

TikTok went dark across the US on Saturday night – a result of Congress deciding to ban the Chinese app back in April. But as influencers begged for followers on rival platform Instagram and regular folk seized their last chance at blink-and-it’s-gone internet fame, a reprieve was already in the works. The app is now back online, with the newly inaugurated president saying he will “most likely” give TikTok 90 more days to work out a deal.

Why should I care?

Zooming in: Tweet others the way you want to be tweeted.

This whole debacle has placed Elon Musk in a bit of an awkward position. He’s formed strong ties with China, not least because the country is usually a reliable customer for Tesla. Plus, Musk is a steadfast supporter of what he calls “absolute free speech” – a belief that influenced his takeover of X (formerly Twitter). But he’s also serving as a confidant to the new president. So Musk has – precariously – opposed the ban on free speech grounds and simultaneously called it “unbalanced” that TikTok is allowed to operate in America while X is banned in China.

The bigger picture: Let’s play ’appy families.

The new president seems to be extending something of an olive branch through this reprieve, perhaps hoping it’s the first of many negotiations that could improve the economic relationship between the two countries. That approach hasn’t gone unnoticed: China’s vice president attended Monday’s inauguration, despite lower-level ambassadors representing the country at previous events. This buddy-buddy approach may not last though. If China doesn’t agree to the US’s proposed trade terms, the president could stamp harsher tariffs on imports – essentially pouring cold water over China’s economy.