47th President of the USA Donald J. Trumphas already influenced global markets just days before he is sworn into office. Expectations, especially regarding economic policies, create uncertainty in the markets before January 20, when Trump will take over the presidency. Inflation fears, rising bond interest rates and fluctuations in the cryptocurrency market are on investors’ radar.
Trump’s Economic Policies and Inflation Concerns
US economy is strong labor market and higher than expected Non-Farm Employment Data (NFP) attracts attention. It will be announced in December Consumer Price IndexWhile (CPI) is expected to be above the previous month, Producer Price Index (PPI) was announced lower. However, Trump’s rhetoric on trade policies fuels inflation concerns.
Customs tariffs, which are expected to be gradually implemented, especially against China, increase tension in the markets.
All these developments US Treasury bond yieldsIt pulls it up. While the yields of 10-year and 30-year bonds approached 5 percent, this increase negatively affected the stock markets. S&P500While it faces the risk of falling below the 5800 level, Bitcoin (BTC) $96,738.3 It dropped below 90 thousand dollars for a short time. The cryptocurrency market remains fragile in the current uncertainty environment.
Optimistic Expectations in the Cryptocurrency Market
QCP CapitalAccording to some figures in the Trump administration cryptocurrencyIts friendly attitude towards investors gives hope to investors. Analysts believe that rumors that Trump may make supportive decisions for the cryptocurrency market could be a short-term support for the market. However, due to the general uncertainty in the markets, investors continue to act cautiously.
Analysts expect volatility to increase further with Trump taking office. Especially the fact that Bitcoin continues to test the 90 thousand dollar level and the rise in bond interest rates show that risks continue in the market. QCP Capital warned that investors should be careful about fluctuations in the markets during this period.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
