🌎 Trump Inauguration Sparks Crypto Volatility Concerns

Trump’s Inauguration Sparks Crypto Market Volatility Concerns

With the US presidential inauguration just around the corner, analysts are warning of significant crypto market fluctuations despite the potential for crypto-friendly policies. Inflation concerns and rising bond yields are expected to contribute to the volatility, causing uncertainty among investors.

According to QCP Capital, the inauguration may lead to a repeat of the market conditions seen in 2017, with Trump’s actions already impacting global markets before he officially takes office on January 20. The US economy is still grappling with inflation, which remains a major concern despite job growth exceeding expectations. Non-farm payrolls came in at +256,000, surpassing the expected +165,000, but inflation is expected to remain above the 2% target.

Rising Bond Yields and Inflation Fears

Trump’s planned tariffs on China are fueling inflation fears, although they may be rolled out gradually. Markets are currently pricing in just two rate cuts for 2025 and 2026, as bond yields continue to rise. This has led QCP Capital to caution investors about the potential for heightened volatility before and after the inauguration, as markets adjust to the new administration.

“Expect heightened volatility before and after the inauguration as markets digest and adjust to a new term under Trump.”

Crypto-Friendly Officials and Potential Price Support

Despite the uncertainty, there is some hope for crypto investors. Trump’s administration includes crypto-friendly officials, and rumors suggest that the president may enact wide-ranging and crypto-friendly executive orders, potentially supporting prices in the short term.

However, analysts remain cautious, particularly with Bitcoin’s $90,000 level being tested several times. Rising bond yields globally could lead to messy and unpredictable market moves in the coming weeks.