trumpmarketinsights
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There is widespread expectation that Donald Trump will introduce crypto-friendly policies. Do you think crypto prices will rise in the short term? What factors do you think will influence the market trends?
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جديد
$RAY /USDT Bull Run Alert! 🚀🔥
Current Price: $7.453
Bullish Zone Start: Enter at $7.40 - $7.50 for optimal entry.
Trading Setup:
Entry Zone: $7.40 - $7.50
Target Levels:
1st Target: $8.00
2nd Target: $8.50
3rd Target: $9.00
Stop Loss: $7.00 (risk management)
Key Insights:
Bullish Momentum: Strong upward potential as the price is breaking key levels.
Volume Surge: Watch for increasing volume as confirmation of continued bullish action.
Like, comment your trade pair for analysis, and follow for more high-potential setups! 💥
#TrumptMarketInsights #TrumpMarketWatch #TrumpMarketInsights #Write2Earn
Current Price: $7.453
Bullish Zone Start: Enter at $7.40 - $7.50 for optimal entry.
Trading Setup:
Entry Zone: $7.40 - $7.50
Target Levels:
1st Target: $8.00
2nd Target: $8.50
3rd Target: $9.00
Stop Loss: $7.00 (risk management)
Key Insights:
Bullish Momentum: Strong upward potential as the price is breaking key levels.
Volume Surge: Watch for increasing volume as confirmation of continued bullish action.
Like, comment your trade pair for analysis, and follow for more high-potential setups! 💥
#TrumptMarketInsights #TrumpMarketWatch #TrumpMarketInsights #Write2Earn
"Trump’s Inaugural Silence on Crypto Sparks Speculation and Market Reaction"
#TrumpMarketInsights
President Donald Trump's inaugural address on January 20, 2025, notably omitted any mention of cryptocurrencies, despite prior indications of a pro-crypto stance. This omission led to immediate market reactions, with the TRUMP meme coin, launched just days earlier, experiencing a 25% drop in value.
The absence of cryptocurrency topics in the speech has raised questions within the crypto community, especially considering the anticipation of favorable policies under the new administration. Some analysts suggest that the omission may have been a strategic decision to focus on broader national issues during the inaugural address, leaving specific policy discussions, including those related to digital assets, for future communications.
Additionally, the launch of the TRUMP meme coin has sparked ethical concerns. Critics argue that the timing and nature of the coin could present conflicts of interest, particularly with foreign entities potentially purchasing the coin to gain favor with the administration.
In summary, while President Trump's silence on cryptocurrency during his inaugural address was unexpected, it may reflect a prioritization of other national issues at this time. The administration's specific policies on digital assets are yet to be detailed, and future statements may provide more clarity on this front.
$BTC
#TrumpMarketInsights
President Donald Trump's inaugural address on January 20, 2025, notably omitted any mention of cryptocurrencies, despite prior indications of a pro-crypto stance. This omission led to immediate market reactions, with the TRUMP meme coin, launched just days earlier, experiencing a 25% drop in value.
The absence of cryptocurrency topics in the speech has raised questions within the crypto community, especially considering the anticipation of favorable policies under the new administration. Some analysts suggest that the omission may have been a strategic decision to focus on broader national issues during the inaugural address, leaving specific policy discussions, including those related to digital assets, for future communications.
Additionally, the launch of the TRUMP meme coin has sparked ethical concerns. Critics argue that the timing and nature of the coin could present conflicts of interest, particularly with foreign entities potentially purchasing the coin to gain favor with the administration.
In summary, while President Trump's silence on cryptocurrency during his inaugural address was unexpected, it may reflect a prioritization of other national issues at this time. The administration's specific policies on digital assets are yet to be detailed, and future statements may provide more clarity on this front.
$BTC
Will Trump's coin rise on Binance? Speculations are running high, but the market remains unpredictable. Do your research before investing!"#TrumpMarketInsights $BTC $TRUMP
#TrumpMarketInsights I think itwill hit 200 soon
Binance Square Official
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Share your #TrumpMarketInsights to unlock a share of 1000USDC
Create a post sharing your insights about the market following Trump’s inauguration with #TrumpMarketInsights to share 1000 USDC in token rewards!
Activity period: 2025-01-20 16:00 (UTC) to 2025-01-21 23:59 (UTC)
How to participate:
Create a post on Binance Square sharing your insights and discussions on the latest market outlook following Trump’s inauguration. You must include one of the following coin cashtag in your post : $BTC , $SOL , $TRUMP or $MELANIA and the #TrumpMarketInsights Ensure the post has at least 10 interactions (including likes, comments, shares, or quotes) and is at least 100 characters long.
Terms and conditions:
This Activity may not be available in your region. Eligible users must be logged in to their verified Binance accounts whilst completing tasks during the Activity Period in order for their entries to be counted as valid. Users are responsible for informing themselves about and observing any restrictions and/or requirements imposed with respect to the access to and use of Binance services in each country from which the services are accessed.Eligible users will be informed by Square Secretary and will be able to redeem their voucher and Points via Profile > Rewards Hub. Token vouchers will be distributed within 21 working days after the campaign ends and expire 14 days after distribution. Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards. Tokens referenced in the context of this Activity are not in any way being recommended, vetted or endorsed by Binance (political or otherwise) and we assume no responsibility or liability for your interaction with these tokens.Binance reserves the right at any time in its sole and absolute discretion to terminate, and/or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating, or suspending this Activity, changing the eligibility terms and criteria, the selection and number of winners, and/or the timing of any act to be done, and all participants shall be bound by any such amendments.Binance reserves the right to cancel a user’s eligibility in this activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.
Disclaimer: Digital asset prices are subject to high market risk and price volatility. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material or any entries in the Activity above should not be construed as financial advice. For more information, see our Terms of Use and Risk Warning.
Activity period: 2025-01-20 16:00 (UTC) to 2025-01-21 23:59 (UTC)
How to participate:
Create a post on Binance Square sharing your insights and discussions on the latest market outlook following Trump’s inauguration. You must include one of the following coin cashtag in your post : $BTC , $SOL , $TRUMP or $MELANIA and the #TrumpMarketInsights Ensure the post has at least 10 interactions (including likes, comments, shares, or quotes) and is at least 100 characters long.
Terms and conditions:
This Activity may not be available in your region. Eligible users must be logged in to their verified Binance accounts whilst completing tasks during the Activity Period in order for their entries to be counted as valid. Users are responsible for informing themselves about and observing any restrictions and/or requirements imposed with respect to the access to and use of Binance services in each country from which the services are accessed.Eligible users will be informed by Square Secretary and will be able to redeem their voucher and Points via Profile > Rewards Hub. Token vouchers will be distributed within 21 working days after the campaign ends and expire 14 days after distribution. Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards. Tokens referenced in the context of this Activity are not in any way being recommended, vetted or endorsed by Binance (political or otherwise) and we assume no responsibility or liability for your interaction with these tokens.Binance reserves the right at any time in its sole and absolute discretion to terminate, and/or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating, or suspending this Activity, changing the eligibility terms and criteria, the selection and number of winners, and/or the timing of any act to be done, and all participants shall be bound by any such amendments.Binance reserves the right to cancel a user’s eligibility in this activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.
Disclaimer: Digital asset prices are subject to high market risk and price volatility. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material or any entries in the Activity above should not be construed as financial advice. For more information, see our Terms of Use and Risk Warning.
#TrumpMarketInsights $BTC seems good to invest on👍
Binance Academy
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What Is the Official Trump Meme Coin (TRUMP)?
Disclaimer: This article is for educational purposes only. The information provided through Binance does not constitute advice or recommendation of investment or trading. Binance does not take responsibility for any of your investment decisions. Please seek professional advice before taking financial risks. Products mentioned in this article may not be available in your region.
Key Takeaways
The TRUMP meme coin is a cryptocurrency launched on the Solana network as a way to celebrate Donald Trump's recent electoral victory ahead of his inauguration.
The meme coin saw a meteoric rise in market value shortly after its launch, surging by more than 300% hours after its release. TRUMP is the fastest-growing meme coin ever launched.
Despite the community hype, the project has sparked criticism over token distribution, potential conflicts of interest, and concerns about risks to traders and investors.
Introduction
In January 2025, the U.S. president-elect, Donald Trump, launched a meme coin called the Official Trump (TRUMP). The cryptocurrency project has quickly gained attention for its approach and quick growth, crossing the $10 billion market cap in less than two days.
What Is the Official Trump Meme Coin?
Launched on the Solana network, the TRUMP meme coin is a cryptocurrency introduced as a way to celebrate Donald Trump's recent electoral victory ahead of his inauguration.
Similar to other meme coins, the TRUMP token was inspired by internet memes and culture. However, unlike Bitcoin or Ethereum, which aim to solve specific problems, meme coins thrive on community engagement and popularity. Naturally, the “Official Trump” meme coin was significantly boosted by Trump’s influence as a political figure.
TRUMP Coin Announcement
The TRUMP coin was officially announced via Truth Social, Trump's social media platform. The announcement described it as a symbol of "winning" and invited supporters to join Trump's community by acquiring the meme coin. The slogan "Fight, Fight, Fight" has been prominently used in promotions in an attempt to emphasize unity and resilience among Trump’s supporters.
Supply and Distribution
The TRUMP coin launched with an initial supply of 200 million coins, with plans to release another 800 million over the next three years. This staggered distribution is supposed to maintain interest in the meme coin over time.
However, the project faced criticism due to the high centralization of tokens. 80% of the total supply will go to the coin creators and CiC Digital (an affiliate of the Trump Organization).
Source: GetTrumpMemes.com
Market Performance
Within 7 hours of its release, the TRUMP coin's market capitalization surged by more than 800%, reaching $3 billion. As of January 20, the coin’s market cap is around $12 billion after crossing the $15 billion mark one day prior.
Melania Trump's meme coin
Less than two days after the launch of the TRUMP coin, Trump’s spouse, Melania Trump, announced a new meme coin called MELANIA. Soon after Melania's meme coin was announced, Donald Trump shared it on social media, leading to a sharp decline in TRUMP's value, which dropped more than 50% in a matter of minutes.
Controversies and Ethical Concerns
Conflict of interest
The Trump Organization, through its affiliate CIC Digital LLC, reportedly holds a large portion of the TRUMP coin supply. Critics argue that this raises potential conflicts of interest, as those close to the project stand to benefit the most from its success.
Investor risks
Meme coins are known for their volatility, and TRUMP is no exception. The rapid rise and fall of its value have raised questions about investor risks. Critics warn that while the coin might bring short-term profits for some, it could lead to significant financial losses for others.
Impact on cryptocurrency
Some believe that high-profile projects like TRUMP and MELANIA could undermine efforts to legitimize cryptocurrencies. By focusing on popularity rather than real products, such coins tend to drive attention away from utility-focused projects, reinforcing stereotypes that the crypto market is strictly speculative.
What’s Next for the TRUMP Coin?
The future of the TRUMP meme coin is uncertain, as its success depends on multiple factors, including community support, market trends, and competition. The price of the TRUMP meme coin will also depend on how the market reacts to the additional supply that will be unlocked in the coming months and years.
Closing Thoughts
The Official Trump meme coin is a bold venture that combines internet culture with political branding. While it has achieved remarkable early success, it also raised many questions, from market volatility to ethical concerns.
Regardless of performance, the TRUMP coin is an interesting case study of how digital assets can intersect with culture, politics, and economics. Whether it will be remembered as a great success or a cautionary tale remains to be seen.
Further Reading
What Are Meme Coins?
What Is Phantom Wallet and How to Use It?
What Is Dogecoin?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Key Takeaways
The TRUMP meme coin is a cryptocurrency launched on the Solana network as a way to celebrate Donald Trump's recent electoral victory ahead of his inauguration.
The meme coin saw a meteoric rise in market value shortly after its launch, surging by more than 300% hours after its release. TRUMP is the fastest-growing meme coin ever launched.
Despite the community hype, the project has sparked criticism over token distribution, potential conflicts of interest, and concerns about risks to traders and investors.
Introduction
In January 2025, the U.S. president-elect, Donald Trump, launched a meme coin called the Official Trump (TRUMP). The cryptocurrency project has quickly gained attention for its approach and quick growth, crossing the $10 billion market cap in less than two days.
What Is the Official Trump Meme Coin?
Launched on the Solana network, the TRUMP meme coin is a cryptocurrency introduced as a way to celebrate Donald Trump's recent electoral victory ahead of his inauguration.
Similar to other meme coins, the TRUMP token was inspired by internet memes and culture. However, unlike Bitcoin or Ethereum, which aim to solve specific problems, meme coins thrive on community engagement and popularity. Naturally, the “Official Trump” meme coin was significantly boosted by Trump’s influence as a political figure.
TRUMP Coin Announcement
The TRUMP coin was officially announced via Truth Social, Trump's social media platform. The announcement described it as a symbol of "winning" and invited supporters to join Trump's community by acquiring the meme coin. The slogan "Fight, Fight, Fight" has been prominently used in promotions in an attempt to emphasize unity and resilience among Trump’s supporters.
Supply and Distribution
The TRUMP coin launched with an initial supply of 200 million coins, with plans to release another 800 million over the next three years. This staggered distribution is supposed to maintain interest in the meme coin over time.
However, the project faced criticism due to the high centralization of tokens. 80% of the total supply will go to the coin creators and CiC Digital (an affiliate of the Trump Organization).
Source: GetTrumpMemes.com
Market Performance
Within 7 hours of its release, the TRUMP coin's market capitalization surged by more than 800%, reaching $3 billion. As of January 20, the coin’s market cap is around $12 billion after crossing the $15 billion mark one day prior.
Melania Trump's meme coin
Less than two days after the launch of the TRUMP coin, Trump’s spouse, Melania Trump, announced a new meme coin called MELANIA. Soon after Melania's meme coin was announced, Donald Trump shared it on social media, leading to a sharp decline in TRUMP's value, which dropped more than 50% in a matter of minutes.
Controversies and Ethical Concerns
Conflict of interest
The Trump Organization, through its affiliate CIC Digital LLC, reportedly holds a large portion of the TRUMP coin supply. Critics argue that this raises potential conflicts of interest, as those close to the project stand to benefit the most from its success.
Investor risks
Meme coins are known for their volatility, and TRUMP is no exception. The rapid rise and fall of its value have raised questions about investor risks. Critics warn that while the coin might bring short-term profits for some, it could lead to significant financial losses for others.
Impact on cryptocurrency
Some believe that high-profile projects like TRUMP and MELANIA could undermine efforts to legitimize cryptocurrencies. By focusing on popularity rather than real products, such coins tend to drive attention away from utility-focused projects, reinforcing stereotypes that the crypto market is strictly speculative.
What’s Next for the TRUMP Coin?
The future of the TRUMP meme coin is uncertain, as its success depends on multiple factors, including community support, market trends, and competition. The price of the TRUMP meme coin will also depend on how the market reacts to the additional supply that will be unlocked in the coming months and years.
Closing Thoughts
The Official Trump meme coin is a bold venture that combines internet culture with political branding. While it has achieved remarkable early success, it also raised many questions, from market volatility to ethical concerns.
Regardless of performance, the TRUMP coin is an interesting case study of how digital assets can intersect with culture, politics, and economics. Whether it will be remembered as a great success or a cautionary tale remains to be seen.
Further Reading
What Are Meme Coins?
What Is Phantom Wallet and How to Use It?
What Is Dogecoin?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
🚨 A New Era Begins Now! 🚨
Following Trump’s inauguration, the crypto world is witnessing an unprecedented revolution! 🤑 $BTC is soaring with stability, $SOL is showing extraordinary strength, and $TRUMP and $MELANIA are the talk of the town, with massive expectations for their future!
This isn’t just a passing trend—it’s the start of an exciting and transformative future in crypto! 🚀🔥
Be part of this monumental shift! What’s your take? Share your predictions now!
#TrumpMarketInsights #CryptoRevolution
Following Trump’s inauguration, the crypto world is witnessing an unprecedented revolution! 🤑 $BTC is soaring with stability, $SOL is showing extraordinary strength, and $TRUMP and $MELANIA are the talk of the town, with massive expectations for their future!
This isn’t just a passing trend—it’s the start of an exciting and transformative future in crypto! 🚀🔥
Be part of this monumental shift! What’s your take? Share your predictions now!
#TrumpMarketInsights #CryptoRevolution
#TrumpMarketInsights https://app.binance.com/uni-qr/cpos/19230976477026?r=174498825&l=en&uco=UOlU-9OUGJuODH-_-WmSaw&isst=1&uc=app_square_share_link&us=copylink
Link open 1 usdt giveaway from binance
Link open 1 usdt giveaway from binance
Trading Bitcoin can be tricky — Here’s 3 key macroeconomic indicators worth following
When to buy and when to sell Bitcoin is a decision that continues to perplex investors to this day. A widening range of factors impact (BTC) price, and developing a methodology for consistently avoiding losses and generating a profit is essential for such a high-volatility asset.
Recently, Bitcoin analyst and Cane Island Digital founder Timothy Peterson shared a cheat sheet encompassing 8 macroeconomic factors that impact Bitcoin price. Let’s take a look at the top 3 metrics to understand how they correlate with Bitcoin price and offer insight into optimal buying and selling opportunities.
US Dollar Index (DXY)
The DXY measures the US dollar value against a basket of major currencies. It is influenced by, among others, interest rates, geopolitics, domestic economic conditions, and foreign exchange reserves held in USD.
A stronger DXY tends to negatively impact Bitcoin's price. Conversely, when confidence in the index wanes, investors turn to risk assets, equities and Bitcoin. This inverse correlation has been observed for years and continued through 2024, as shown in the recent NYDIG research.
Since September 2024, the DXY has been on an upward trajectory, reaching 110, its highest point in over two years. Some analysts think this presents a bearish outlook for Bitcoin. However, according to Michael Boutros, senior technical strategist at Forex.com, this rally is nearing a long-term resistance level. If this resistance holds, it could reverse the trend, potentially creating a more favorable environment for Bitcoin.
Since its peak on Jan. 13, DXY has dipped 1.27%, but the incoming Trump presidency could reverse this trend, depending upon the policies of his cabinet.
Federal Reserve benchmark interest rates and Bitcoin
Federal Reserve interest rates influence borrowing costs across the US. Decreasing rates make borrowing cheaper, boosting demand for risk-on assets. Conversely, rising rates tend to shift investor preference toward yield-bearing assets like bonds.
Bitcoin, too, is considered a risky asset. Researchers from the Swiss bank Piguet Galland have studied the correlation between BTC and interest rates over time.
The graph above shows that the inverse correlation emerged after the post-Covid interest rate cuts when BTC surged to a cycle high of almost $69,000. This was followed by sharp rate hikes in 2022, during which BTC dropped to a cycle low of $16,000. This pattern suggests that Bitcoin is still considered a risk-on asset.
In addition to the Fed’s Federal Open Market Committee (FOMC), which typically meets eight times a year, other economic metrics like the Consumer Price Index (CPI) are also used by traders as inversely correlated data points that impact Bitcoin price versus the market’s inflation expectations.
Related: Bitcoin price still on track to $180K in 2025: Interview with Filbfilb
When trading the monthly CPI release, market expectations often matter more than the raw numbers. For instance, the December 2024 CPI, which showed a 2.9% annual inflation rate, met market expectations. The Core CPI, excluding food and energy, came in at 3.2%, better than the anticipated 3.3%. Although still above the Fed’s 2% target, it brought some relief to the markets. Immediately following the news, the S&P 500 climbed 1.83%, the Nasdaq 100 2.3% and Bitcoin gained 4.3%.
So far, “with inflation, good news is good news” for Bitcoin, as quantitative market analyst Benjamin Cowen put it. Decreasing inflation tends to push BTC upward. However, there’s another side to Bitcoin — its role as digital gold, often touted as a hedge against inflation. In this paradigm, it is the increasing inflation that should drive BTC higher, as more people turn to Bitcoin to protect against the depreciating US dollar. As Bitcoin adoption grows, this scenario could materialize, inversing the current correlation.
Bond yields influence on Bitcoin
Bond yields, directly correlated with the Fed's rates and inflation, serve as another valuable metric for Bitcoin traders. High yields on low-risk government bonds can reduce the appeal of riskier assets like Bitcoin that do not generate yield.
Since December 2024, yields on US long-term bonds have been rising, reaching 4.77%, the highest level since 2023. This increase has occurred despite the Fed's cautiously cutting interest rates, fueling concerns about a potential surge in inflation. During this timeframe, Bitcoin price action was mostly negatively correlated with the bonds, confirming the theory.
Government bonds are also directly related to the notion of debt. When governments issue more debt (sell more bonds) to finance spending, the increased supply can lead to higher yields. If the debt reaches unsustainable levels, there is a risk of dollar debasement. The US adding $13 trillion to its debt since 2020 is unsettling news for the economy and, by extension, Bitcoin in the short term. In the longer run, however, this could increase interest in Bitcoin as an alternative currency.
Ray Dalio, CEO of Bridgewater Associates, recognized this possibility. Speaking at Abu Dhabi Finance Week, the billionaire expressed a preference for “hard money” over debt-based investments,
“I want to steer away from debt assets like bonds and debt and have some hard money like gold and Bitcoin.”
Dalio pointed out that rising global debt will likely diminish the value of fiat currencies, predicting inevitable debt crises. So there could come a time when high bond yields signal an economy unable to sustain its own debt. This, in turn, might reverse the current correlation between Bitcoin and bonds.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.#TrumpMarketInsights #TrumpMarketInsigh $BTC
Recently, Bitcoin analyst and Cane Island Digital founder Timothy Peterson shared a cheat sheet encompassing 8 macroeconomic factors that impact Bitcoin price. Let’s take a look at the top 3 metrics to understand how they correlate with Bitcoin price and offer insight into optimal buying and selling opportunities.
US Dollar Index (DXY)
The DXY measures the US dollar value against a basket of major currencies. It is influenced by, among others, interest rates, geopolitics, domestic economic conditions, and foreign exchange reserves held in USD.
A stronger DXY tends to negatively impact Bitcoin's price. Conversely, when confidence in the index wanes, investors turn to risk assets, equities and Bitcoin. This inverse correlation has been observed for years and continued through 2024, as shown in the recent NYDIG research.
Since September 2024, the DXY has been on an upward trajectory, reaching 110, its highest point in over two years. Some analysts think this presents a bearish outlook for Bitcoin. However, according to Michael Boutros, senior technical strategist at Forex.com, this rally is nearing a long-term resistance level. If this resistance holds, it could reverse the trend, potentially creating a more favorable environment for Bitcoin.
Since its peak on Jan. 13, DXY has dipped 1.27%, but the incoming Trump presidency could reverse this trend, depending upon the policies of his cabinet.
Federal Reserve benchmark interest rates and Bitcoin
Federal Reserve interest rates influence borrowing costs across the US. Decreasing rates make borrowing cheaper, boosting demand for risk-on assets. Conversely, rising rates tend to shift investor preference toward yield-bearing assets like bonds.
Bitcoin, too, is considered a risky asset. Researchers from the Swiss bank Piguet Galland have studied the correlation between BTC and interest rates over time.
The graph above shows that the inverse correlation emerged after the post-Covid interest rate cuts when BTC surged to a cycle high of almost $69,000. This was followed by sharp rate hikes in 2022, during which BTC dropped to a cycle low of $16,000. This pattern suggests that Bitcoin is still considered a risk-on asset.
In addition to the Fed’s Federal Open Market Committee (FOMC), which typically meets eight times a year, other economic metrics like the Consumer Price Index (CPI) are also used by traders as inversely correlated data points that impact Bitcoin price versus the market’s inflation expectations.
Related: Bitcoin price still on track to $180K in 2025: Interview with Filbfilb
When trading the monthly CPI release, market expectations often matter more than the raw numbers. For instance, the December 2024 CPI, which showed a 2.9% annual inflation rate, met market expectations. The Core CPI, excluding food and energy, came in at 3.2%, better than the anticipated 3.3%. Although still above the Fed’s 2% target, it brought some relief to the markets. Immediately following the news, the S&P 500 climbed 1.83%, the Nasdaq 100 2.3% and Bitcoin gained 4.3%.
So far, “with inflation, good news is good news” for Bitcoin, as quantitative market analyst Benjamin Cowen put it. Decreasing inflation tends to push BTC upward. However, there’s another side to Bitcoin — its role as digital gold, often touted as a hedge against inflation. In this paradigm, it is the increasing inflation that should drive BTC higher, as more people turn to Bitcoin to protect against the depreciating US dollar. As Bitcoin adoption grows, this scenario could materialize, inversing the current correlation.
Bond yields influence on Bitcoin
Bond yields, directly correlated with the Fed's rates and inflation, serve as another valuable metric for Bitcoin traders. High yields on low-risk government bonds can reduce the appeal of riskier assets like Bitcoin that do not generate yield.
Since December 2024, yields on US long-term bonds have been rising, reaching 4.77%, the highest level since 2023. This increase has occurred despite the Fed's cautiously cutting interest rates, fueling concerns about a potential surge in inflation. During this timeframe, Bitcoin price action was mostly negatively correlated with the bonds, confirming the theory.
Government bonds are also directly related to the notion of debt. When governments issue more debt (sell more bonds) to finance spending, the increased supply can lead to higher yields. If the debt reaches unsustainable levels, there is a risk of dollar debasement. The US adding $13 trillion to its debt since 2020 is unsettling news for the economy and, by extension, Bitcoin in the short term. In the longer run, however, this could increase interest in Bitcoin as an alternative currency.
Ray Dalio, CEO of Bridgewater Associates, recognized this possibility. Speaking at Abu Dhabi Finance Week, the billionaire expressed a preference for “hard money” over debt-based investments,
“I want to steer away from debt assets like bonds and debt and have some hard money like gold and Bitcoin.”
Dalio pointed out that rising global debt will likely diminish the value of fiat currencies, predicting inevitable debt crises. So there could come a time when high bond yields signal an economy unable to sustain its own debt. This, in turn, might reverse the current correlation between Bitcoin and bonds.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.#TrumpMarketInsights #TrumpMarketInsigh $BTC
$BTC
LUNC, or Terra Luna Classic, is a cryptocurrency that was part of the Terra ecosystem. On May 7, 2022, the price of LUNC dropped dramatically from around $119 to $0.00001 in just one day.
#TrumpMarketInsights
LUNC, or Terra Luna Classic, is a cryptocurrency that was part of the Terra ecosystem. On May 7, 2022, the price of LUNC dropped dramatically from around $119 to $0.00001 in just one day.
#TrumpMarketInsights
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