Cryptocurrency enthusiasts have not yet experienced the anticipated rewards in 2025, as the optimism for the first quarter is starting to diminish. With almost half of the first quarter already passed, altcoinslinger at lower levels compared to the beginning of the year. What can we expect in the upcoming days and hours? What should traders be prepared for this week?
There have been significant developments in the cryptocurrency market. One of the most crucial updates is the statements made by former President Trump. The new U.S. president has announced additional tariffs on countries, which has led to retaliatory actions. While negotiations with Canada and Mexico have provided some support to the market, increasing tensions with China, which now involve Japan, and Trump’s decisions affecting all countries have dampened morale.
So, what can we expect in the cryptocurrency market? This week, we could witness increased volatility due to inflation data. A surprising figure could result in significant movements in either direction. Many members of the Federal Reserve have expressed concerns that Trump’s tariffs might further complicate inflation matters, especially as imported goods are expected to see price increases domestically.
If the tariff hikes are quickly reflected in commodity prices, we may see clear impacts on inflation numbers in the coming months. Additionally, while preparing this piece, Hassett from the White House hinted at potential actions concerning India.
In the midst of all these developments, Trump desires lower interest rates. However, with inflationary pressures mounting, is this feasible? While Trump claims he can achieve this by reducing energy prices, there is uncertainty surrounding the current conditions. Surprising inflation figures could further complicate the situation.