Tech and crypto make a mark as Trump takes charge

Vijay Valecha, AGBI, January 21, 2025

Donald Trump’s inauguration on Monday as the 47th President of the United States was an overt display of the evolving ties between technology, politics and finance. 

The presence of tech industry titans and the cryptocurrency market’s dramatic response highlighted the strong relationship between Trump’s administration and the tech world, with potential long-term impacts for Gulf nations.

Breaking with tradition, some of the most exclusive seats at Trump’s inauguration were reserved for powerful tech CEOs, marking a shift from past practices where these spots were typically occupied by family members and past presidents. 

Photos from the event showed Meta CEO Mark Zuckerberg and his wife, Priscilla Chan, alongside Amazon CEO Jeff Bezos, Google CEO Sundar Pichai, and Tesla and SpaceX chief Elon Musk, a Trump adviser. Apple CEO Tim Cook and TikTok CEO Shou Zi Chew were also in attendance.

This prominent display of tech leadership underscored their likely influence in Trump’s new administration.

In contrast, outgoing President Joe Biden had warned in his farewell address about the growing power of tech billionaires, describing their influence as a risk to democracy and a sign of “oligarchy” in the US. 

Trump dismissed the criticism, saying: “They’re not going to get anything from me. I don’t need money, but I do want the nation to do well, and they’re smart people and they create a lot of jobs.”

Crypto markets surge

The cryptocurrency market responded dramatically to Trump’s return, with Bitcoin soaring past $109,500 over the weekend, setting a new all-time high.

“If Trump makes any announcements regarding rate cuts or pro-crypto moves, BTC and other coins are naturally expected to rally,” said Vijay Valecha, chief investment officer at Dubai-based Century Financial.

The inauguration also boosted the $TRUMP memecoin, launched on the Solana blockchain, which became the 15th-largest crypto asset by market capitalisation within 48 hours. 

Simon Peters, crypto analyst at eToro, attributed the surge to investor enthusiasm over Trump’s expected pro-crypto policies: “Bitcoin’s new all-time high and the rapid rise of $TRUMP memecoin highlight the market’s optimism about the future of cryptoassets.”

However volatility in the market persisted. The $TRUMP coin experienced a 53 percent decline after former First Lady Melania Trump introduced her own cryptocurrency, $MELANIA.

Despite this, the overall market sentiment remained bullish, driven by Trump’s criticism of high interest rates and promises to foster a favourable environment for digital assets.

Gulf connections

Trump’s inauguration also highlighted the growing influence of Gulf nations in the global tech and financial ecosystem.

Gulf sovereign wealth funds have increasingly invested in major US technology companies.

The Oman Investment Authority acquired a stake in Elon Musk’s artificial intelligence company, xAI, in December 2024. Saudi Arabia’s Kingdom Holding and Prince Alwaleed Bin Talal invested $400 million in xAI, further solidifying their involvement in Musk’s enterprises.

Beyond xAI, Gulf investors have shown interest in other Musk-led ventures. During Musk’s acquisition of Twitter (now X) in October 2022, Prince Alwaleed bin Talal maintained a $1.89 billion stake in the platform, making him the second-largest investor.

The Qatar Investment Authority also contributed $375 million to support the acquisition.

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In the broader US tech landscape, Gulf sovereign wealth funds have diversified their portfolios by investing in major corporations, including the big four technology firms – Google parent Alphabet, Amazon, Apple and Meta Platforms. 

The Gulf’s interest in the cryptocurrency sector also aligns with Trump’s policies. Valecha highlighted the broader implications of Trump’s approach, noting that any dovish signals on interest rates could positively impact Gulf markets, where crypto adoption and blockchain initiatives are already gaining traction.

As Trump embarks on his second term, the tech sector is expected to navigate an environment marked by deregulation.

While this could foster innovation and growth, critics, including former president Biden, warn of the potential risks of concentrating power among tech giants and billionaires.

Source

AGBI