Trump Inauguration Sparks Crypto Volatility Warnings

With the inauguration of Donald Trump mere days away, crypto investors are being warned to expect sharp price swings. Analysts at Singapore-based QCP Capital say they expect “heightened volatility” in the crypto market both in the lead-up to, and following the Jan. 20 ceremony. They liken current market jitters to turbulence seen during the first term of Trump in 2017.

Inflation in the U.S. economy remains a concern. Whereas job growth has been strong-non-farm payrolls were up 256,000 against an expected 165,000-inflation fears have lingered.The consensus for December is for a hotter CPI number than previous readings; something that will keep markets on their toes.

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At the same time, this uncertainty is heightened by the prospect of proposed tariffs on China by Trump, which might also add inflation. Again, these might be introduced piecemeal, not all at once. Also improving bond yields are shifting the market’s expectations, pricing in fewer rate cuts in 2025 and 2026.

Expect higher volatility in the lead-up to and after the inauguration as markets chew and adjust to a new Trump term,” warned QCP Capital.

There is, however, a silver lining: rumors of the Trump administration packed with crypto-friendly officials and, of course, whispers of executive orders that give digital assets relief. This might relieve the market temporarily.

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Still, caution prevails. Bitcoin has repeatedly tested the $90,000 mark, and with rising bond yields, the coming weeks could be anything but predictable for crypto investors.

Sahil Poudel

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