This week, much anticipated announcements from Donald Trump have started to surface. He is maintaining his signature approach, aiming to calm the markets by providing more clarity regarding Kevin Warsh and the monetary policies he plans to pursue. However, this may not be enough to trigger a market rally. But why is that?
Cryptocurrencies: Breaking News
We previously discussed the possibility that Trump may soon take action to counter the market’s perception of Warsh’s opposition to Quantitative Easing (QE). The announcement on Friday that Warsh would be the new Fed chair led to a downturn in risk markets. Both gold and silver experienced significant losses. How was Trump expected to respond? Naturally, he would either have Warsh communicate directly or provide a guarantee on QE and interest rate cuts. Trump states, “The guarantee is me,” indicating that interest rates will decrease.
If this were the only issue, BTC would have had a rapid surge to $80,000. However, the situation with Iran is also on the agenda. The negotiations scheduled for Friday have already heightened tensions. With mere hours remaining, the U.S. and Iran have failed to agree on the location and scope of the discussions. Iran prefers to exclude missiles from the talks and meet in Oman, and does not want Saudi Arabia, Turkey, and Qatar at the table. Meanwhile, the U.S. insists on including third-party countries at the table and hosting the discussions in Istanbul, with an agenda involving nuclear topics alongside missiles. Iran has not positively responded to this, and Trump has previously voiced support for an attack, recently stating, “Iran’s Supreme Leader must be very concerned at the moment.”
This situation is reminiscent of a “now they need to worry” attitude, suggesting that if the meeting does not occur on Friday—given that Iran shows no signs of compromising—a sudden U.S. strike on Iran could take place on Sunday. This anticipation has led to BTC’s volatile movements, caught in the middle due to the contradictory outcomes of two crucial statements.
