At a time when tensions are already high in global markets, Donald Trump's expected speech in Davos is seen as a critical turning point for cryptocurrency markets. At the World Economic Forum meeting tomorrow, Trump is expected to address topics such as tariffs, interest rate policies, economic growth, inflation, and the US global trade strategy. It is being discussed that these statements could trigger sharp price movements in Bitcoin and major altcoins in the short term. Assessments suggest that Trump's Davos engagements will not be limited to a diplomatic framework but could contain messages that directly affect market sentiment. According to information reported by Reuters, Trump will meet with top executives of global companies in Davos. The future of US economic policies will be discussed at meetings attended by many figures from the finance, consulting, and technology sectors.
Why is the crypto market so sensitive?
Trump's past statements have caused significant fluctuations not only in traditional financial markets but also in crypto assets. Especially regarding trade wars, interest rates, and regulations, clear and firm statements are among the factors that directly affect risk appetite. Therefore, the Davos speech means much more than just an ordinary political speech for crypto investors.
Recent trade tensions with Europe and Trump's firm stance on tariffs are among the issues that increase uncertainty. Trump's unequivocal defense of tariffs against European countries within the framework of his controversial Greenland plans has made the already fragile balances in the markets even more delicate. His reiteration of this issue in Davos could trigger sudden price movements in risky assets.
In addition, Trump's long-standing calls for interest rate cuts by the US Federal Reserve are noteworthy. Messages regarding interest rates could indirectly affect the crypto market through the dollar index and bond yields. A signal of a looser monetary policy is seen as a factor that could increase interest in crypto assets in the short term.
How might Bitcoin and altcoins be affected?
According to market experts, Bitcoin will most likely be the first to react to Trump's speech. Bitcoin's volatility is expected to increase rapidly if issues like trade wars, economic slowdowns, or global uncertainty come to the forefront. Currently, Bitcoin is trading around $91,300, up about 2% in the last 24 hours.
Following Bitcoin, Ethereum and other major altcoins are likely to exhibit similar price behavior. Messages regarding cryptocurrency regulations in the US could be particularly decisive for altcoins. If Trump mentions regulations like the long-awaited CLARITY Act, rapid movements in the altcoin market could be seen in anticipation of regulation. XRP stands out in this regard, given its focus on tokenization and financial infrastructure projects. Positive signals regarding the US-based regulatory framework could lead to sharper price reactions in XRP. Similarly, Solana and Cardano are also among the projects that could be affected by Trump's statements, mirroring the overall market sentiment.
