Trump’s Comeback, Market Ready For Wild Ride?

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What to Pay Attention to

? Bitcoin reached an all-time high of over $109,000 on January, driven by growing optimism that the Trump administration would ease regulatory hurdles.

? President Trump launched a new cryptocurrency token, $TRUMP, surged to a market value of nearly $11 billion on its launch day, with its future performance tied to his political actions, public statements, and popularity.

? U.S. set to impose 25% tariff on Mexico and Canada starting Feb 1, 2025, shaking up trade relations! Canada vows retaliation, including tariffs on U.S. goods and Mexico also prepares countermeasures to protect its economy, keeping markets on edge.

On January 20, 2025, Donald Trump was inaugurated as the 47th President of the United States, marking his second, non-consecutive term. Due to freezing temperatures and high winds, the ceremony took place indoors at the U.S. Capitol Rotunda in Washington, D.C. Trump was sworn in by Chief Justice John Roberts and delivered an inaugural address, proclaiming the start of a "golden age" for the U.S. and emphasizing national renewal and prosperity.

Following the inauguration, President Trump signed several executive orders, including withdrawing the U.S. from the World Health Organization and the Paris Agreement, freezing new federal regulations and hiring, establishing the Department of Government Efficiency, and issuing pardons to around 1,500 individuals involved in the January 6, 2021, Capitol riot. On the heels of his inauguration, President Trump also introduced his own cryptocurrency token, $TRUMP which surged to a market value of nearly $11 billion on its launch day . These changes led to notable market reactions.

The financial markets saw significant volatility, with the U.S. dollar initially dropping due to speculation that aggressive tariffs could be delayed, followed by continued fluctuations. The U.S. dollar index is still under pressure, trading lower around 107.80. Gold prices surged to a three-month high, driven by uncertainty over Trump's tariff policies and his support for lower interest rates, which weakened the dollar. Gold is currently trading above 2770.00. In the cryptocurrency market, Bitcoin and the $TRUMP token also retreated and have stabilized.

Looking ahead, the U.S. dollar’s performance during Trump’s second term is expected to experience significant volatility due to his policy decisions. While his stance on tariffs, particularly with China, could result in short-term weakness for the dollar, particularly if he pursues a more aggressive trade policy, any potential tax cuts and lower interest rates could diminish the dollar's appeal. However, stronger-than-expected economic growth could provide some support for the dollar in the longer term.?

Furthermore, the Trump administration’s handling of trade relations—especially the new tariffs on Canada and Mexico—will likely keep markets on edge, adding to the volatility in currency and commodity markets. This decision has sent shockwaves through global trade, and Canada has already vowed retaliation, including tariffs on U.S. goods. Mexico is also preparing countermeasures to protect its economy. These developments could lead to increased market uncertainty and potential volatility in the near term as trade relations between North American countries continue to evolve.

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