Donald Trump’s policies mark the pulse of cryptocurrencies. Many institutional investors migrate to shelter assets, which does not favor these assets.
Cryptocurrencies try to recover this Friday, with the market attentive to Donald Trump’s policies in the US. He Bitcoin (BTC) Mild progress to the U $ S96,800 area in the last 24 hours. For its part, the Ethereum (eth) Trepa seeks to exceed US $ 2,700.
In the rest of the market, most increases are observed, led by XRP (+9.8%). The exceptions are BNB and Tron, which decrease more than 5% and 2%, respectively.
Analysts point out that Bitcoin remains stuck and quoting laterally due to the uncertainty prevailing in the market. The queen cryptocurrency has lost about 10% since its highest point, when it reached US $ 109,000, and has left 1.3% in the last week. According to Antonio Di Giacomo, senior market analyst at XS.com, this behavior “It aligns with a broader bearish market, influenced by macroeconomic factors.”
Donald Trump’s policies mark the passage of cryptocurrencies
In this sense, Bitcoin is being very influenced by what happens in the United States. There, the latest inflation data has been higher than expected. First, the Consumer Price Index (CPI) rebounded in January, both in its general and the underlying rate, while the Production Price Index (IPP) surprised up and stood at 3.5% , three tenths percentage above market forecast.
Paul Ashworth, chief economist for North America of Capital Economics, says that these data support that, “with President Trump threatening to impose inflationary tariffs of wide scope, The Federal Reserve (FED) will not resume the cuts of interest rates this year“
It should be remembered that the president of the Fed, Jerome Powellsaid this week at the United States Congress that the Central Bank You are not in a hurry to lower interest rates. The Fed leader also warned about the dangers of cutting “official rates too fast” and their possible consequences in inflation.
Di Giacomo also points to the hardening of regulation in various jurisdictions as another factor that is ballasting the crypts. In Europe, the new cryptocurrency regulations have imposed greater transparency requirements for exchanges, which has led some investors to withdraw their funds. In Asia, China has reinforced its restrictive position, further limiting access to cryptocurrency markets and reducing the volume of operations in the region.
Institutional investors migrate to safer assets
Another key factor has been The behavior of institutional investorswho have reduced their exposure to the crypto market in search of safer assets. The Net outputs in the quoted funds (ETF) from BTC to cash They reflect this circumstance: in the last three days, They amounted to almost US $ 500 million. According to Goldman Sachs, the lack of demand reflects “The little interest in opening new long net positions in these fundswhich are mainly used as negotiation vehicles. “
On the business level, Coinbase It is news after publishing their latest results. The American cryptobols recorded an exponentially higher than 2023, since their accounts were very influenced by the approval of the ETFs in the first quarter of the year and for Trump’s electoral victory in the room. The net benefit amounted to $ 2,579 million And net income increased by 138%, to 2,927 million dollars. Most data were above the consensus forecast.
Source: Ambito
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