Cryptocurrencies face declines after recent increases, while Trump’s statements and the economic environment suggest an uncertain but potentially favorable future for the sector.
Cryptocurrencies register falls after the recent increases. He Bitcoin (BTC) struggles to maintain $100,000, while Ethereum (ETH) loses 1% and falls below US$3,900, after having reached US$4,000 in previous days.
The rest of the altcoins They also appear downward. Tokens such as XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) experience drops of up to 6%. However, Chainlink (LINK) stands out on the positive side as it has seen notable rises after World Liberty Financial (WLFI), the Donald Trump-backed cryptocurrency project, acquired $2 million worth of tokens.
World Liberty Financialsupported by the Trump family, is a unified platform that allows users to borrow and lend cryptocurrencies, create liquidity pools, and transact stablecoins. WLFI functions as the governance token within the platform.
Trump has also attracted attention for his most recent statements. During his visit to the New York Stock Exchange this Thursday, the president-elect rang the bell and assured that his government will achieve “something great with cryptocurrencies“. “We don’t want China or anyone else to adopt them before us. “We want to be the leaders,” Trump said.
Trump, the Fed and the crypto market
These statements come shortly after a source close to the president-elect exclusively told Axios that Trump “would love to see bitcoin hit $150,000” early in his term. According to the source, Trump will be very focused on the price of the most important cryptocurrency and plans to implement favorable regulations for the sector.
Analysts believe that these statements bring closer the possibility of the United States creating a strategic reserve of bitcoin, one of the most ambitious plans proposed by Trump during his campaign. Furthermore, the appointment of Paul Atkins as president of the Securities and Exchange Commission (SEC) has been interpreted as a positive sign for the future of cryptocurrencies under this administration.
On another front, the market shows short-term optimism after the latest US inflation report. The Consumer Price Index (CPI) rose to 2.7% year-on-year in November, slightly above the 2.6% in October. Core inflation, which excludes food and energy, remained stable at 3.3%. Both indices met market expectations.
This data was enough for analysts to anticipate that the Federal Reserve (Fed) will reduce interest rates at its next meeting. Michael Brown, senior strategist at Pepperstone, commented that “the November CPI report shows that disinflationary progress has stalled, although this should not deter the Federal Open Market Committee (FOMC) from cutting rates by 25 basis points in the last meeting of the year.” Brown added that, despite this data, developments in the labor market will be key to future monetary policy decisions.
Source: Ambito
