DJT Stock Jumps After Truth API Launch & Bitcoin’s Rise Above $64k

Trump Media stock continued its strong uptrend today, reaching a high of $10.26, its highest level since April 17. DJT stock has now jumped by nearly 50% from its lowest level this year. The ongoing Bitcoin recovery and the recent launch of the Trump API helped it.

DJT Stock Jumps After Truth API Launch

Trump Media, the parent company of TruthSocial, jumped after it launched Truth API, a new, controversial service.

This product will see the company offer access to the most influential accounts to Wall Street traders for $100,000 a month. It is tailored to companies like high-frequency trading (HFT) and algorithmic trading firms.

Specifically, the product would provide early access to President Donald Trump’s posts. They have historically moved markets.

For example, he has previously made posts mentioning companies like Citigroup and Palantir, leading to an initial surge. For subscribers, getting this information early would have led to substantial trading revenues.

The service has become controversial because it is an indirect way for Trump to monetize the presidency.

For Trump Media, however, the service will help it make more money, especially now that its advertising business is struggling. The risk, however, is that the service will only be relevant in the next two years, when Trump will be president.

The most recent results showed that Trump Media continued struggling and was not making substantial sums of money. Its revenue in the first quarter was just $900,000, a tiny amount for a company valued at over $2.8 billion.

Its net loss jumped to over $405 million in the first quarter, and the company has little chance of becoming profitable in the near future.

Worse, third-party data show that traffic to its website continued to drop last month, even as Trump kept making headlines. Its traffic dropped by 11.47% to 20.5 million in June.

In contrast, traffic to Elon Musk’s X jumped by 4.6% to 4.4 billion. Pinterest had over 1.46 billion, while Gab, another right-wing social, had over 1.4 million users.

One reason for the ongoing TruthSocial weakness is that Trump is not as influential as he was a few months ago. His approval ratings have continued falling because of the US-Iran war.

Bitcoin Price is Offsetting TruthSocial Weakness

On the positive side, Trump Media has a potential catalyst that may help to fuel its performance: Bitcoin. Data shows that the company owns 9,542 Bitcoin worth over $610 million today.

It is now the 14th biggest Bitcoin holder, with more coins than Block, Galaxy Digital, and Next Technology Holding. In addition to Bitcoin, the company also has over $2.2 billion in cash and other assets.

The company will benefit if Bitcoin bounces back, which is possible as it has remained in a narrow range in the past few months. Some analysts believe that it will now bounce back, with Standard Chartered predicting that it will move to $100k.

Trump Media Stock Price Technical Analysis

The daily chart suggests that the DJT stock will likely have more upside in the coming days. For one, it has slowly formed an inverted head-and-shoulders pattern, a common bullish reversal sign in technical analysis. It has just moved above its upper side.

The stock has jumped above this pattern’s neckline and the 50-day Exponential Moving Average (EMA). That is a sign that bulls are slowly prevailing as the short squeeze materializes.

Therefore, the short-term outlook for the stock is bullish, with the next key level to watch being the psychological level of $15. A drop below the support level of $8 will invalidate the bullish outlook.