As the inauguration of Donald J. Trump, the 47th President of the United States, draws near, global markets have already started to feel the impact. With the inauguration scheduled for January 20, there is uncertainty surrounding economic policies. Market watchers are concerned about inflation, rising bond yields, and fluctuations in the cryptocurrency market.
Trump’s economic policies and inflation concerns
The US economy is characterized by a strong labor market and unexpectedly robust Non-Farm Payroll (NFP) data. The Consumer Price Index (CPI) is expected to surpass the figures from the previous month, while the Producer Price Index (PPI) reported lower numbers. However, Trump’s trade policy rhetoric is causing worries about inflation. In particular, the gradual implementation of tariffs on China is increasing tensions in the markets. These developments are driving up US Treasury yields. The yields on 10-year and 30-year bonds are approaching 5%, which is having a negative impact on stock markets. The S&P 500 is at risk of dropping below the 5800 level, and Bitcoin (BTC) briefly dipped below $90,000. The cryptocurrency market remains fragile in the face of this uncertainty.
Optimistic expectations in the cryptocurrency market
According to QCP Capital, some individuals within the Trump administration have shown a favorable attitude towards cryptocurrencies, giving hope to investors. Analysts suggest that rumors of supportive decisions for the crypto market could provide short-term support. However, overall market uncertainty continues to prompt cautious behavior from investors. Analysts expect increased volatility after Trump’s inauguration. The ongoing testing of the $90,000 level for Bitcoin and the rising bond yields indicate that risks persist in the market. QCP Capital advises investors to remain vigilant during this period of market fluctuations.
