The initial weeks of President Trump's tenure have been marked by significant developments on both the domestic and international fronts. Speculation arises that the European Union may soon find itself in Trump's crosshairs as a potential target for new tariffs. Meanwhile, Trump's leverage over China appears diminished compared to his first trade war with the nation. In a related financial development, Eric Trump has advocated for the inclusion of Bitcoin (BTC) in their family-backed crypto platform, World Liberty Financial's portfolio, potentially aiding Bitcoin's recent price recovery.
Amid these geopolitical and economic shifts, the Bank of England (BoE) has responded by adjusting its monetary policy. On Thursday, the BoE reduced its policy rates by 25 basis points, setting the new policy rate at 4.50%. This decision comes as a strategic move to address evolving economic conditions. The British currency, GBP/USD, experienced a notable decline following the rate cut, settling into the 1.2360-1.2370 range.
Bitcoin's price experienced a slight recovery after a recent dip of nearly 5%, now trading above $98,000 as of Thursday. The addition of BTC to World Liberty Financial’s portfolio is seen as a factor contributing to this resurgence. Investors are advised to remain engaged with ongoing market developments and pivot their focus toward Governor A. Bailey's upcoming press conference for further insights.