Bitcoin, the leading cryptocurrency, saw its price hover around $97,000 on Wednesday, following a 3.5% decline the previous day. This drop comes as President Trump's initial weeks in office undergo scrutiny in a comprehensive report. The report hints that the European Union could emerge as Trump's next target for tariffs, a move that is fueling concerns over global trade dynamics.
The US private sector added 183,000 jobs in January, a figure that surprisingly left the US Dollar unmoved. Meanwhile, EUR/USD remains within a consolidative range above 1.0400, signaling a cautious market sentiment. Despite these economic indicators, Bitcoin displays signs of weakness. David Sacks, appointed as Trump's crypto czar, announced plans to evaluate a Bitcoin Reserve. However, this announcement has yet to bolster Bitcoin's performance.
In contrast to Bitcoin's struggle, gold prices have soared to unprecedented levels, nearing $2,880. The surge in gold can be attributed to several factors. A weakened US Dollar and declining yields across the curve have significantly contributed to the precious metal's rise. Furthermore, safe haven demand is being bolstered by ongoing concerns over potential tariffs.
Trump's influence over China appears diminished compared to the first trade war, suggesting a shift in the geopolitical landscape. This evolving scenario has investors and market analysts closely monitoring the administration's next moves. As uncertainties linger, the focus remains on how these developments will impact both digital and traditional assets.