Pro-Crypto Donald Trump won the presidential elections of the United States more than four months ago, and since then, the period has been characterized by the turbulence of the financial market and the global uncertainties surrounding the rates, geopolitical tensions and ongoing conflicts in the Middle East and between Ukraine and Russia.
Bitcoin (BTC) has increased more than 23% from the elections of November 5, reaching a historical maximum of more than $ 109K at the end of January. Despite a subsequent decrease of 30% of its peak, it remains one of the assets with the best performance. The strategy (MSTR), often considered a Bitcoin proxy, has won 34%, recovering well under the Trump administration despite falling previously around 60% since its November maximum.
Ethereum ether token (ETH) has fallen up to 18%, along with a disappointing action in the broader cryptographic market. The Valkcoin Mining ETF has also had problems, falling almost 30%. Meanwhile, investors have turned money in BTC, which increases their highest domain rate by 2% to more than 61.
European actions have done well, eclipsing their American counterparts. The German Dax index has increased by 20%, and the FTSE 100 of the United Kingdom has gained 6%, along with weaker actions in the US stock market, where Nasdaq and S&P 500 have dropped approximately 2%. A recent Bank of America report highlights a record drop in the assignments of actions of the United States. Gold, which benefits from uncertainty, has continued to establish new historical maximums, exceeding $ 3,030, an increase of 11%.
The US dollar index (DXY), which measures the strength of the dollar against an important coin basket, remains stable. However, under Trump, the dollar has weakened significantly, providing some relief to risk assets and the main currencies such as the euro and the great British pound.
Meanwhile, the 10 -year Treasury yield. UU. It has decreased slightly to 4.2%, a key metric that the administration is closely monitoring. Oil prices have collapsed in around 7%, since the United States maintains its position on energy domain to reduce energy costs.
In particular, some of the so -called “magnificent 7” shares have fought, with Nvidia (NVDA) by 16% and Tesla (TSLA) decrease 6%.
Detoxification in progress?
Recent losses on Wall Street and in the cryptography market have lit hopes for the “Trump put” or the possible political support. However, the Administration seems to be willing to support the short -term pain for long -term benefits, believing that this approach will clean the markets of excess fiscal expenses of the Biden era.
This restart is expected to be characterized by lower inflation, better energy security and higher 10 -year treasure performance.
“Scott Besent’s talk of a” detoxification period “suggests that a controlled recession could be ahead. If that is the case, Trump’s play book seems clear: to blame the recession of Biden, use tariffs and cryptographic narratives to administer costs and boost lower interest rates to fuel technology and AI’s growth.
“Anyway, I don’t see that BTC falls below 70k, possibly 73-78k, which is a solid time to enter for any buyer in the fence. In the next 1-2 years, BTC to 200K is not as crazy as most would think,” Chen added.
