trade

Bitcoin’s ability to hold $100,000 is being suppressed by rising treasury yields and a strengthening dollar. Is the “Trump trade” ending?

The New Year kicked off with markets setting up for President-elect Donald Trump's inauguration into the White House and global markets are gripped by uncertainty as US Treasury yields spiked to yearly highs and risk assets slid amid speculation around potential tariffs under the incoming administration.

January began with strong momentum, as equities and digital assets surged on the so-called “Trump trade,” with investors anticipating a more favorable framework for digital assets and corporate balance sheets. However, this bullish sentiment quickly faded as US bond yields sharply rose, bringing the New Year’s rally to an abrupt pause and causing both digital assets and stocks to reverse earlier gains.

Bitcoin’s (BTC) brief flirtation with $100,000 quickly fizzled and the cryptocurrency has posted a negative return of around 6% over the past 30 days, while other digital assets have suffered even steeper losses. “The correlation between Bitcoin and US interest rates has historically been negative,” said Eloísa Cadenas, Chief Innovation Officer at Monetae Exchange, speaking with Cointelegraph.

Read more