Donald Trump's return to the White House sparked a rush of investments in companies and crypto projects tied to him and his family. While some bets have succeeded, many have collapsed, erasing gains for eager investors. This volatility highlights the speculative nature of these assets.
Donald Trump's inauguration triggered a surge in Trump-related stocks and cryptocurrencies, as traders anticipated benefits from his administration. However, a year on, numerous investments have sharply declined, reflecting initial over-optimism.
Trump Media & Technology Group, which operates Truth Social under the ticker DJT, exemplifies the downturn. The stock tripled in the five weeks before late October 2024, reaching a $11 billion valuation despite minimal revenue and no profits. Trump relies on the platform for official communications, yet it attracted only 1.5 million monthly active US users in November, per Similarweb data—far below X's 54.2 million or Reddit's 59.8 million. Even Bluesky outpaced it with 2.4 million users. The company has shifted toward financial services, crypto, and AI, but results remain uncertain. Shares now trade below $11, down 80% from their peak and valuing the firm under $3 billion.
Crypto ventures fared worse. The Trump meme coin, launched shortly before inauguration, hit $45.57 on January 19, 2025, for a $9 billion market cap, with 80% of supply held by Trump Organization affiliates. It now stands at $5.60, a $1.1 billion valuation and 88% drop. Melania Trump's coin peaked at $8.48 that day ($1.6 billion cap) but fell below $2 by February and trades at 11 cents today ($100 million cap), a 99% loss for peak buyers.
American Bitcoin, supported by Donald Trump Jr. and Eric Trump, debuted on Nasdaq in September via a merger with Gryphon Digital Mining. It reached $9.31 on September 9 but dipped below $2 amid a crypto retreat. World Liberty Financial, co-founded by Trump, Steve Witkoff, and their sons, saw its token climb to 25 cents in late September before settling at 14 cents.
Private prison stocks like GEO Group also fizzled. Shares hit $35.35 pre-inauguration—a 175% rise from September 2024's close—on expectations of immigration detentions. Yet, with focus on deportations to places like El Salvador, demand lagged. GEO's price has halved from its high. 'I've given up on private prisons,' said Matthew Tuttle, CEO of Tuttle Capital Management. 'A lot of people thought ICE would round up people and they would sit in private prisons. I was not expecting sending people to El Salvador.'
Not all bets failed. Bitcoin soared post-election on Trump's pledges to make America the crypto capital, including a national stockpile. Though off October highs, it trades around $90,000, up from $63,000 at September 2024's end. European defense stocks thrived too, boosted by Trump's NATO pressures. The Select STOXX Europe Aerospace & Defense ETF rose over 70% this year, drawing $1 billion in inflows post-victory. 'It was crazy,' Tuttle noted. 'Sometimes irrational exuberance meets the brick wall of logic,' added Art Hogan, chief market strategist at B. Riley Wealth.
