According to BlockBeats, analyst Omkar Godbole has suggested that the defensive positioning in the stock market may be due to concerns that President-elect Trump's inauguration on January 20 could be a 'sell the news' event. Over the past two months, there has been an increase in risk appetite in financial markets, with expectations that the incoming Trump administration will implement business-friendly and economic reforms. However, the possibility of profit-taking cannot be ignored.
Trump's inauguration on January 20 is widely anticipated to lead to changes in cryptocurrency regulation and potentially establish a strategic Bitcoin reserve in the coming months. These developments could support the next market cycle. QCP Capital shares a similar view, advising traders to wait for new U.S. economic data on Friday before making further market moves.