Bitcoin and the dollar are rising as Donald Trump’s inauguration approaches. The latest information suggests favorable treatment of cryptocurrencies under the new administration. Discover the experts’ analyzes on the potential impact of these measures…
As the world eagerly awaits the inauguration of Donald Trump, financial markets are in turmoil. Bitcoin and the dollar, two flagship assets, have experienced notable growth in recent days. According to sources familiar with the matter, this increase is partly linked to the intentions of the future Trump administration regarding cryptocurrencies.
Bitcoin on its way to new heights
The price of bitcoin jumped more than 4.5% on Friday, approaching its all-time high set in mid-December. Buoyed by encouraging information, the price of the most popular cryptocurrency in the world seems to be on the rise.
According to BloombergDonald Trump reportedly plans to make cryptocurrencies a political priority, in particular by giving a voice to players in the sector within his administration. The creation of a national strategic bitcoin reserveencompassing the government’s existing holdings, would also be under review.
The market appears to be reacting positively to this sign that cryptocurrencies may receive more favorable treatment.
Antonio Di Giacomo, analyst at XS.com
Since Trump’s election in early November, the value of bitcoin has already increased by more than 50%. If these rumors are confirmed, the upward trend could further accelerate in the weeks to come.
The dollar is also doing well
At the same time, the greenback gains ground against the main currencies. It appreciates by 0.20% against the euro and by 0.55% against the pound sterling. However, its progress remains limited by the uncertainties surrounding Donald Trump’s future policies.
Currency traders are watching Monday’s inauguration closely. Some observers estimate that the Trump team could sign a hundred executive orders on day one. Among the anticipated measures, an increase in customs duties which would increase inflation in the United States.
-The fog around Donald Trump’s policies may be starting to clear, but higher tariffs seem like a safe bet.
Capital Economics Analysts
The Fed does not rule out rate cuts
Despite inflationary expectations, a governor of the US Federal Reserve suggested that rate cuts remained possible. Christopher Waller indicated that the Fed could ease its monetary policy up to four times in 2025 if inflation develops favorably. A first drop from March cannot be ruled out.
These contrasting prospects make the coming months particularly decisive for the dollar. Its safe-haven status could be strengthened in an uncertain economic context, while faster-than-expected monetary easing would limit its upside potential. Investors will need to closely follow the first steps of the Trump administration and the signals sent by the Fed.
What future for bitcoin and the dollar?
The inauguration of Donald Trump therefore promises to be a pivotal moment for the financial markets. The fate of cryptocurrencies and the future trajectory of the greenback will largely depend on it.
If bitcoin manages to take advantage of a more favorable regulatory framework, it could settle permanently above $100,000 and confirm its status as an essential asset. Conversely, an unexpected tightening of regulations would suddenly slow down its rise.
As for the dollar, its strength will depend on the speed and magnitude of the measures taken by the new administration. A massive fiscal stimulus coupled with an aggressive trade policy would support the greenback, while disappointments on both counts would penalize it.
One thing is certain: the next few weeks promise to be exciting for currency traders and cryptocurrency enthusiasts. The choices of Donald Trump and his team will shape the financial landscape in the months to come, making bitcoin and the dollar assets to watch closely. The inauguration on January 17 could well mark the start of a new era for these two market giants.
