With inflation fears and rising bond yields, analysts are warning of significant volatility in the cryptocurrency market surrounding Trump's inauguration, despite potential crypto-friendly policies.

Donald TrumpWith less than a week to go until his inauguration, analysts are now bracing for “heightened volatility” in the cryptocurrency market. Singapore-based QCP Capital suggested in its report Latest report That, similar to 2017, Trump's actions are already shaking global markets before he officially takes office on January 20.

Inflation remains a major concern for the US economy. While job growth beat expectations, with non-farm payrolls coming in at +256,000 versus +165,000 expected, inflation remains a concern. "While the CPI appears to be moderating above the 2% target...market participants still expect the December CPI to come in higher than the previous reading," analysts warn.

Additionally, the tariffs that Trump intends to impose on China are fueling these concerns about inflation, although they may be implemented gradually rather than immediately. Markets are now pricing in just two interest rate cuts for 2025 and 2026, with bond yields rising, QCP noted.

“Expect increased volatility before and after the inauguration as markets digest and adjust to a new term under Trump.”

QCB Capital

Despite the uncertainty, there is some hope for cryptocurrency investors. QCP notes that the Trump administration has crypto-friendly officials, and that “rumors that Trump will issue broad, crypto-friendly executive orders provide short-term tailwinds, which could support prices.”

However, analysts remain cautious. Bitcoin (Bitcoin) The $90,000 level has been tested several times, and with bond yields rising globally, the next few weeks may bring chaotic and unpredictable market movements.