Trump vs. Musk: Capital Market Performance

Following the U.S. presidential election, the market saw a surge led by meme coins, marking the beginning of a Meme Super Cycle. Established tokens like BTC and DOGE, as well as emerging tokens like PNUT, dominated this period of explosive growth.

However, not all assets participated in the rally. Stocks and tokens associated with Donald Trump failed to capitalize on the bullish momentum. For example, Trump Media and Technology Group (TMTG) saw its share price plummet from $51.51 on October 29 to $28.10, a decline of approximately 6%. Similarly, World Liberty Financial (WLF), a DeFi project linked to the Trump family, struggled to gain traction, with no significant price movement tied to Trump’s victory.

Mixed Results: Musk Outshines Trump

While Trump-related assets lagged, those tied to Elon Musk soared. Following Trump’s election win, Tesla’s stock price surged, achieving a 14.75% single-day gain — its largest increase since July 2023.

This rally boosted Musk’s net worth by 10% in a single day. Musk, who owns 20.5% of Tesla, saw Tesla’s market capitalization rebound above $1 trillion, regaining him the world’s richest status, with a net worth exceeding $300 billion.

In the cryptocurrency market, Musk’s influence fueled dramatic price surges for meme coins such as DOGE and PNUT. Musk, an outspoken supporter of Dogecoin since 2019, has frequently used his social media platforms to promote the token, significantly influencing its price movements.

For instance, in 2021, Musk announced via Twitter that SpaceX would send a Dogecoin to the moon. This single tweet caused DOGE’s price to spike by 30% in a matter of hours. Tesla and SpaceX also experimented with accepting DOGE as a payment method, further solidifying Musk’s connection to the coin.

PNUT: Musk’s New Favorite

PNUT, launched on CoinW on November 11, 2024, introduces a meme coin concept centered around animal charity. Built on the Solana ecosystem, PNUT draws inspiration from Peanut, a viral squirrel whose owner, Mark, gained a social media following by sharing Peanut’s daily adventures on Instagram. Mark later established an animal rescue organization in Peanut’s name, raising funds for animals in need.

Tragically, Peanut was euthanized by New York authorities under environmental regulations shortly before the U.S. election. The incident sparked widespread outrage online, with comparisons drawn to the BLM movement. Criticism of New York’s environmental agency intensified when Musk retweeted the story, driving PNUT’s price up by 85% at its peak.

The creation of the Department of Government Efficiency (DOGE) further boosted PNUT’s market value, which temporarily surged to $800 million. Simultaneously, DOGE entered CoinMarketCap’s top ten cryptocurrencies by market cap, marking the first time a meme coin achieved this milestone.

Bitcoin: Trump’s Pro-Crypto Ally

While WLF and TMTG failed to benefit from Trump’s election, Bitcoin skyrocketed, driven by Trump’s crypto-friendly stance. Trump had pledged to make Bitcoin a national strategic reserve if elected.

Following his victory, Bitcoin surged to new all-time highs. On November 6, Election Day, Bitcoin surpassed $75,000 and continued its upward trajectory, peaking at $93,000 in the days that followed.

Trump also promised to remove SEC Chair Gary Gensler on his first day in office, signaling a potential easing of regulatory enforcement. The Trump administration is expected to withdraw lawsuits against major exchanges like Binance and Coinbase, while considering pro-crypto figures like Dan Gallagher as Gensler’s potential successor.

Additionally, Trump plans to establish a Bitcoin and Cryptocurrency Presidential Advisory Council to provide clear regulatory guidance. Within his first 100 days, he aims to formalize Bitcoin as part of the national reserve strategy.

FIT21 Act: A Game Changer for Crypto Regulation

A cornerstone of Trump’s crypto strategy is the FIT21 Act (Financial Innovation and Technology for the 21st Century Act), which has already passed the House and is poised for Senate approval under the Republican majority.

The FIT21 framework defines the jurisdiction of the SEC and CFTC, creating clarity for digital assets:

• Digital Assets: Regulated by the SEC, covering tokens primarily issued for fundraising without inherent utility.
• Digital Commodities: Overseen by the CFTC, including assets like ETH, which serve essential functions in blockchain ecosystems.

For example, ETH’s utility in powering Ethereum would place it under CFTC oversight — a position even SEC Chair Gary Gensler has acknowledged.

The framework also introduces compliance requirements for stablecoins and intermediaries. By clearly defining regulatory boundaries, FIT21 allows projects with genuine utility to operate without fear of regulatory overreach, fostering transparency and deterring fraudulent schemes.

Trump’s Opposition to CBDCs

Trump has explicitly rejected the idea of a Central Bank Digital Currency (CBDC), arguing that it would erode global trust in the U.S. dollar while infringing on citizens’ privacy rights.

Many crypto advocates share this view, seeing CBDCs as tools for government financial surveillance. Trump emphasized that decentralized cryptocurrencies like Bitcoin represent true financial freedom and privacy for Americans.

By promoting Bitcoin, Trump aims to accelerate its adoption in global markets, leveraging its growth to reinforce the U.S. dollar’s dominance in international trade.

Conclusion

Trump’s presidency marks a transformative moment for the United States, granting neo-conservatives two years of unchallenged control to shape the nation’s future.

For the first time, Bitcoin and cryptocurrencies are at the forefront of global political discourse, cementing their role as pivotal assets in the strategies of major world powers.