On January 20, 2025, Donald Trump officially became president for the second time. A lot of excitement surrounded this day, especially in the financial world. Many believed big changes were coming, including major growth in cryptocurrency values because of Trump’s approach to regulations. You can learn more about Trump’s Inauguration Day here.
Another big hope was for the US economy to improve significantly. Trump had promised to lower corporate tax rates (taxes businesses pay on their profits) from 21% to 15% for companies making products in America. He also mentioned plans to eliminate certain taxes, like those on social security and tips, and make car loans completely tax-deductible. This made many small businesses hopeful for more support and growth. To learn what corporate taxes are, visit Corporate Tax Rates.
However, now that a year has passed since Inauguration Day, the results show something different. Researchers tracked how a $10,000 investment made on January 20, 2025, performed across 12 different investment categories, like stocks, metals, and cryptocurrencies. They discovered that money has shifted from risky assets, like cryptocurrency, into safer options, like physical metals. This movement suggests a feeling of uncertainty in the market.
What Happened to Investments?
The conclusions are eye-opening. Although many thought cryptocurrency would thrive under Trump’s leadership, the big winners turned out to be precious and industrial metals. If you’re unfamiliar, precious metals like gold and silver are valuable materials used in jewelry, electronics, and investments. Industrial metals, like copper and steel, are used in construction and manufacturing.
The best-performing asset was silver, which saw its value increase by a stunning 134%. Gold also performed well, rising by about 60%. To give you some context, silver and gold prices often act as safe havens when people are worried about economic uncertainty or inflation, which is the general rise in prices over time.
Experts have different opinions about why these metals performed so well. Some link it to ongoing world conflicts, like the Russia-Ukraine war or tensions in the Middle East. Others believe Trump’s tariffs (extra taxes on goods entering or leaving the country; learn more about tariffs) played a role. Technology also contributed, as metals like silver became essential in industries like AI, electric vehicle (EV) production, and solar panels.
Keep in mind, precious metals like silver have limited supply since they’re natural resources, not man-made products. Although silver is more common than gold, most silver production comes as a by-product when mining for other metals, making it harder to keep up with demand. Learn more about silver at Silver and gold at Gold.
The Big Surprise: Cryptocurrencies Underperform
During his campaign and presidency, Trump promised to support cryptocurrencies, making many in the industry hopeful. If you’re not familiar, cryptocurrencies are digital currencies that work on networks like blockchain, such as Bitcoin and Ethereum. Many expected that these assets would see huge price increases, especially because of regulatory improvements.
Trump’s administration has taken steps to improve laws surrounding cryptocurrencies. For example, in July, the government announced plans to strengthen the country’s position in the digital asset space. Proposals included new bills to update anti-money laundering (AML) laws, regulations for market structures, and more. They also created a Strategic Bitcoin Reserve, a pool of resources to boost the industry.
Despite these efforts, cryptocurrency prices have been disappointing. Since Trump took office, Bitcoin (the first-ever cryptocurrency, learn more here) is down 18%. Other well-known coins, like Ethereum (Ethereum), Ripple (Ripple), and Dogecoin (Dogecoin) also saw losses ranging from 10% to over 75%.
Here’s a snapshot of cryptocurrency losses:
- Bitcoin (BTC): -18%
- Ethereum (ETH): -10%
- Ripple (XRP): -42%
- Solana (SOL): -52%
- Dogecoin (DOGE): -68%
And the list goes on.
The poor performance of cryptocurrencies shows that money has moved away from these risky investments into more stable options, like precious metals. If someone had invested in silver, gold, platinum (Platinum), and palladium (Palladium) instead, their portfolio would have doubled in value over one year.
Conclusion
In summary, the “Trump Trade” that many expected to be a cryptocurrency boom turned out to favor commodities, especially metals. A year after Inauguration Day, silver and gold were the top-performing assets due to factors like world conflicts, tariffs, and industrial demand. Cryptocurrency, despite promises of favorable policies, saw poor results during this time.
If you’re planning to invest, this shift is a reminder to explore all types of assets and understand global trends. Whether it’s precious metals like silver or cryptocurrencies like Bitcoin, being informed can help you make smarter financial decisions.