Cryptocurrency enthusiasts have not yet seen the expected rewards in 2025, as optimism for the first quarter begins to fade. As we approach the midpoint of the first quarter, altcoinslinger at lower levels compared to the beginning of the year. What can we expect in the coming days and hours? What should traders anticipate this week?
There are several significant developments in the cryptocurrency market. One of them is the statements made by former President Trump. The new U.S. president has announced additional tariffs on countries, which has resulted in retaliatory actions. While negotiations with Canada and Mexico have provided some support to the market, tensions with China, and now involving Japan, have dampened morale due to Trump’s decisions affecting all countries.
What can we expect in the cryptocurrency market? This week, we may see increased volatility due to inflation data. A surprising figure could lead to significant movements in either direction. Many members of the Federal Reserve have expressed concerns that Trump’s tariffs may further complicate inflation matters, especially as imported goods experience domestic price increases.
If the tariff hikes are quickly reflected in commodity prices, we could see clear impacts on inflation numbers in the coming months. Additionally, while preparing this article, there have been hints from the White House that potential actions concerning India are on the horizon.
In the midst of all this, Trump desires lower interest rates. However, with mounting inflationary pressures, the feasibility of this remains uncertain. While Trump claims he can achieve lower interest rates by reducing energy prices, the current conditions are clouded with uncertainty. Surprising inflation figures could further complicate the situation.