Following the inauguration of President Donald Trump, markets have been volatile, reflecting significant economic shifts and trader sentiment. Santiment's data reveals that Bitcoin (BTC) prices experienced a swift correction soon after Trump's ascent to the presidency. This movement coincided with traders on social media expressing major greed and fear of missing out (FOMO) concerning Bitcoin investments.
Trump's inauguration has also intensified focus on international trade, particularly with China, Canada, and Mexico, countries that are closely linked to the United States through trade relations. The new administration's anticipated policy changes are expected to bring substantial adjustments to these relationships. The S&P 500 initially saw a decline but demonstrated resilience with a quick recovery, as reported by the Wall Street Journal, emphasizing the market's adaptability.
In the bond market, the US 10-year Treasury bond yield fell over 1%, settling below 4.6% in response to Trump's tariff threats. This decline in yields played a crucial role in maintaining XAU/USD (gold) prices, which held their ground amid economic uncertainty. Meanwhile, MicroStrategy (MSTR) displayed a slow yet steady increase in momentum, aligning with broader market trends.
The S&P 500's recovery continued, characterized by enhanced breadth and sectoral leadership that overshadowed the daily increase in yields. Despite these gains, the GBP/USD pair faced bearish pressure, trading below 1.2300 on Tuesday due to the strength of the US dollar. This strength was further reinforced by Trump's tariff threats and the US dollar's robust performance.
Across the Atlantic, the UK's ILO Unemployment Rate nudged higher to 4.4% over the three months leading up to November, reflecting ongoing economic challenges. Concurrently, the EUR/USD pair remained in negative territory, trading below 1.0400 on Tuesday, illustrating the euro's struggles against a strong dollar.
Bitcoin managed to stabilize above the $102,000 mark on Tuesday, following a new all-time high of $109,588 recorded the day before. This stabilization reflects a momentary pause in the cryptocurrency's rapid ascent amidst heightened trader interest and market speculation.
As bond yields continue to evolve, the 10-year US Treasury bond yield is gradually nearing the 5% mark. This trajectory aligns with predictions made by market analysts earlier in autumn and may signal forthcoming shifts in interest rates and investment strategies.