QCP: Why is the Cryptocurrency Market Under Pressure? Trump Administration Could Make a Surprise Move - Koin Bulletin

QCP analysts express that there is an expectation of high volatility in the global markets less than a week before Donald Trump takes the oath as the 47th President of the United States.

According to analysts, Trump's trade policies that could create inflationary effects and increasing bond yields are fueling uncertainty in the markets.

Analysts note that the US labor market has shown stronger performance than expected. QCP states that the latest NFP data recorded an increase of 256,000, and believes that this could increase inflationary pressures. They predict that the CPI is still running above the 2% target and that the December data could be higher compared to the previous month.

QCP states that Trump's statements about planning to implement gradual customs tariffs on trade partners like China have triggered inflation concerns in the markets and also led to an increase in bond yields in line with these concerns. While the yields of 10-year and 30-year US Treasury bonds approach 5 percent, the decrease in expectations of a rate cut by the Fed creates a negative outlook for investors.

Uncertainty and Opportunities in Cryptocurrencies

According to analysts, rising bond yields and fragility in equity markets are creating an unfavorable environment for risky asset classes. The S&P 500 testing below the $5,800 level and Bitcoin dropping below the $90K level for a while is seen as a sign of weakness in the markets.

However, QCP analysts believe that the Trump administration presents potential opportunities for the cryptocurrency market. It is noted that rumors of cryptocurrency-friendly figures in the administration and Trump issuing comprehensive, crypto-friendly executive orders could create a positive atmosphere in the markets.

Analysts say that Trump's policies often do not match his rhetoric, which could be a relief that exceeded market expectations. However, they predict that high volatility will continue before and after the inauguration, emphasizing that the $90,000 level is an important support point, especially in Bitcoin.