Introduction
Following the inauguration of Donald Trump as the 47th President of the United States on January 20, the global Altcoin market experienced a significant correction, particularly in the price of BTC (BTC), which quickly declined after Trump's inauguration speech. As his speech did not mention Altcoins or BTC, it led to a correction in the global Altcoin market. The BTC price dropped from its all-time high to around $101,920, and other Altcoins were also affected. Despite the short-term volatility, the global Altcoin market has maintained a relatively high trading volume.
BTC price correction, dropping to around $101,000
After the end of Trump's inauguration speech, the BTC price experienced a 5.7% decline, falling from the January 20 all-time high (ATH) of $103,092 to a low of around $100,555. At the time of writing, the BTC price has temporarily rebounded to $101,928, fluctuating above the $100,000 mark. The short-term market volatility has also affected the performance of other major Altcoins.
In addition to BTC, the prices of Altcoins such as ETH, SOL, and DOGE have also declined, reflecting the overall bearish trend in the Altcoin market. It is worth mentioning that Trump's meme coin, TRUMP, which was launched on January 18, did not receive enthusiastic market support, and its price fell by 30.12% within 24 hours, currently trading at $32.5.
Trump's inauguration speech did not mention Altcoins, leading to a lukewarm market response
Contrary to the general market expectation that Trump's inauguration speech could have a positive impact on BTC and Altcoins, Trump did not mention Altcoins or BTC at all in his speech. This move made the already tense market response appear even more subdued. Although the Altcoin market is still higher than the previous day's prices, the lack of policy support or direct impact has further increased the uncertainty about the future market trend.
At the same time, Trump announced several other important policies, including expanding oil production, cracking down on illegal immigration, canceling gender identity recognition, and promoting America-first economic and trade strategies. However, Altcoins did not appear on his policy priority list, which has disappointed many investors.
Global Altcoin market trading volume surges, but meme coins suffer heavy losses
Despite the overall market correction, the trading volume in the global Altcoin market has increased significantly. Compared to Sunday, the trading volume has grown by 21%, with approximately $354.87 billion in Altcoin assets traded in the past 24 hours, of which $171 billion involved Tether (USDT), and $132 billion was in BTC transactions. While the trading volume of BTC and other mainstream tokens is relatively large, some meme coins have experienced significant losses.
For example, the meme coin MELANIA, launched by Trump's wife Melania Trump, plummeted by 52.11%, making it one of the worst-performing tokens of the day. Similarly, another meme coin, POPCAT, fell by 12.95%. In addition, the global Altcoin derivatives market has also experienced massive liquidations, with approximately $826 million in trades being liquidated in the past 24 hours, mostly in long positions on BTC and ETH.
U.S. bond market dynamics: Strong economic data and Trump's policies are key factors
In the U.S. bond market, strong economic data at the end of 2023 led to the 10-year U.S. Treasury yield briefly exceeding 5%. However, on January 17, the core CPI year-over-year rate fell to 3.2%, causing a significant drop in U.S. Treasury yields, with the 10-year yield recording its largest decline in seven weeks.
Bank of America's chief investment strategist pointed out that the U.S. government's fiscal spending has been massive, and the expansion of government spending over the past five years has played an important role in driving economic growth, but this growth momentum may face challenges. For the future trend of the 10-year U.S. Treasury, the market generally expects it to close the year at 4.4%, up from the October 2022 forecast of 3.7%. Analysts believe that the likelihood of the 10-year U.S. Treasury yield breaking through 5% is relatively low, and market sentiment is gradually recovering.
The impact of Trump's policies: Uncertainty in the U.S. bond and Altcoin markets
Although Trump did not mention Altcoins in his inauguration speech and focused on issues such as energy, trade, and immigration, he has announced that he will issue an executive order to stop the recruitment of new IRS agents and require federal employees to return to on-site work. This policy may indirectly impact the Altcoin industry, particularly in terms of tax and regulatory changes.
At the same time, the family-owned DeFi platform World Liberty Financial has recently acquired a large amount of Altcoin assets, including $47 million worth of ETH, WBTC, AAVE, LINK, TRX, and ENA tokens. This indicates that even with the market correction, some institutions and investors are still actively positioning themselves in Altcoin assets.
Conclusion
Although the Trump administration did not mention BTC or Altcoins in the inauguration speech, the market's reaction shows that the performance of Altcoin assets is still influenced by various factors, including the global economy, government policies, and fluctuations in investor sentiment. Based on the current market situation, BTC and other Altcoins may face some uncertainty, but their long-term potential is still worth attention. As the global Altcoin market and bond market continue to evolve, investors need to closely monitor future policy changes and market dynamics to make informed investment decisions.
