Trump's inauguration itself is also one of the important observation points of the market, especially in the executive order, there may be potential content related to cryptocurrency policy. Globally, on January 24, the interest rate decision of the Bank of Japan also became a focus event. The market predicts that Japan will raise interest rates by 25 basis points, bringing the benchmark interest rate to 0.25%. This is the highest level since 1995, which may have an indirect impact on the cryptocurrency market. In early August last year, the Bank of Japan's previous interest rate hike triggered a large-scale liquidation of yen carry trades, causing global financial markets to tremble. We also need to pay attention to this trend in January.
In addition, the interest rate decision of the Federal Reserve on January 29 has also attracted much attention, and the market expects that interest rates will remain unchanged at the current level. However, since Trump's election, the US dollar index has risen sharply. This trend is quite similar to the market performance after Trump's first election in 2016, when the US dollar index encountered adjustments after a rapid rise. Therefore, the current upward trend of the US dollar index may also face similar resistance. Given that the US dollar index and Bitcoin prices are usually correlated, I think the Bitcoin market will benefit if the US dollar index pulls back.