The Bitcoin market witnessed a price drop to approximately $97,000 on Wednesday, following a 3.5% decline the previous day. This downturn comes amid President Trump's administration's scrutiny in a new report that evaluates his initial weeks in office, with particular attention to his trade policies. The European Union has emerged as a potential next target for Trump's tariff plans, intensifying market anxiety and influencing safe-haven demand.
Meanwhile, despite the creation of 183,000 jobs in the US private sector in January, the US Dollar remained stagnant against other currencies. The EUR/USD pair continues to trade within a consolidative range above 1.0400, reflecting the perceived weakness of the US Dollar. This stagnation comes as Trump faces diminished leverage over China compared to the first trade war, affecting his broader economic strategies.
In the realm of cryptocurrency, David Sacks, appointed as Trump's crypto czar, announced plans to evaluate a Bitcoin Reserve. This move indicates a potential shift in policy that could influence future cryptocurrency markets. Sacks' announcement comes at a time when Bitcoin remains volatile, reflecting broader economic tensions.
Simultaneously, gold prices have reached all-time highs, nearing $2,880. The weak US Dollar is a contributing factor to this surge, alongside declining US yields. The rise in gold prices is also supported by increased demand for safe-haven assets, driven by growing concerns over potential tariffs under Trump's administration.