Cryptocurrency enthusiasts have yet to experience the anticipated rewards in 2025, as optimism for the first quarter begins to fade. As we approach the midpoint of the first quarter, altcoins linger at lower levels compared to the beginning of the year. What can we expect in terms of developments in the coming days and hours? What should traders anticipate this week?
There have been significant developments in the world of cryptocurrency. One of the most crucial updates is the statements made by former President Trump. The new U.S. president has announced additional tariffs on countries, leading to retaliatory actions. While negotiations with Canada and Mexico have provided some support to the market, increasing tensions with China, which now involve Japan, and Trump’s decisions affecting all countries have dampened morale.
So, what can we expect in the world of cryptocurrency? This week, we may witness increased volatility due to inflation data. A surprising figure could result in significant movements in either direction. Many members of the Federal Reserve express concerns that Trump’s tariffs may further complicate inflation matters, as imported goods are expected to see price increases domestically.
If the tariff hikes are quickly reflected in commodity prices, we may witness clear impacts on inflation numbers in the coming months. Additionally, while preparing this piece, Hassett from the White House hinted at potential actions concerning India.
Amidst all of this, Trump desires lower interest rates. However, with inflationary pressures mounting, is this feasible? While Trump claims he can achieve this by reducing energy prices, there is a cloud of uncertainty hanging over the current conditions. Surprising inflation figures could further complicate the landscape.
