As the inauguration of Donald J. Trump, the 47th President of the United States, draws near, global markets are already experiencing the impact. With the inauguration scheduled for January 20, there is uncertainty surrounding economic policies. Market observers are particularly 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 surprisingly robust Non-Farm Payroll (NFP) data. It is expected that the Consumer Price Index (CPI) will exceed the figures from the previous month, while the Producer Price Index (PPI) reported lower figures. However, Trump’s rhetoric on trade policies is fueling concerns about inflation.
In particular, the gradual imposition 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 nearing 5%, negatively impacting stock markets. The S&P 500 is at risk of falling below the 5800 level, while Bitcoin (BTC) briefly dropped 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, which gives hope to investors. Analysts suggest that rumors of supportive decisions for the cryptocurrency market could provide short-term support. However, general market uncertainty continues to prompt cautious actions from investors.
Analysts anticipate increased volatility following 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 warns investors to remain vigilant amidst market fluctuations during this period.
