In its January 15th update, COINOTAG News highlighted the impending inauguration of the 47th President of the United States, Donald Trump, on January 20th. As inflation continues to pose challenges for the U.S. economy, the job market remains resilient. The surge in U.S. Treasury yields has led to increased volatility within the U.S. stock market, with the S&P 500 teetering on the edge of falling below 5800 points. This turbulent environment has resulted in Bitcoin experiencing significant pressure, momentarily slipping under the $90,000 threshold.
The macroeconomic landscape is currently unfavorable for risk assets; however, past behaviors suggest that Trump’s policy initiatives may diverge from his rhetoric. There is growing speculation that Trump’s administration could favor cryptocurrency, raising hopes of a potential pro-crypto executive order that may buoy market sentiment. Consequently, traders should prepare for heightened volatility surrounding the inauguration, as the market responds to both Trump’s policies and the broader economic climate.
Traders are advised to remain cautious, particularly with Bitcoin’s support at $90,000 being tested repeatedly. Additionally, the fragility of the U.S. stock market amidst rising global bond yields could lead to further unpredictable market dynamics.