The post Market Shifts: Trump Narratives Fade as Crypto and Stock Trends Realign appeared on BitcoinEthereumNews.com.

Market Shifts: Trump Narratives Fade as Crypto and Stock Trends Realign On January 13, 2025, cryptocurrency market analysis firm 10x Research revealed that financial markets are moving away from narratives surrounding U.S. President-elect Donald Trump. This shift coincides with notable declines in U.S. stocks and altcoins, raising concerns about broader market dynamics and the unpredictability of Federal Reserve policies. Post-Election Gains Dissipate for U.S. Stocks Following the election of Donald Trump in December 2024, U.S. stocks initially rallied, fueled by optimistic investor sentiment. However, these gains were short-lived: December Declines: U.S. equities began losing ground after December 6, 2024, suggesting a lack of confidence in the market’s ability to sustain post-election momentum. Underlying Causes: Uncertainty surrounding the administration’s economic policies and broader market dynamics likely contributed to the reversal. Altcoins Face Steep Declines The cryptocurrency market also experienced a downturn, particularly in altcoins. According to 10x Research: Sharp Declines After Dec. 6: Altcoins saw significant value drops, reflecting reduced investor appetite. Trading Volume and Funding Rates: Crypto market trading volumes and funding rates have fallen, further signaling a bearish sentiment. The Role of Macroeconomic Factors Bitcoin and other cryptocurrencies remain heavily influenced by macroeconomic conditions. Key drivers include: Global Market Trends: A slowdown in global economic activity has dampened enthusiasm for high-risk assets. Federal Reserve Rate Cuts: The Federal Reserve’s interest rate decisions have a profound impact on investor sentiment and market liquidity. Uncertainty Surrounding Federal Reserve Policies 10x Research highlighted the unpredictability of the Federal Reserve’s interest rate strategies, citing historical inconsistencies: September 2024 Rate Cut: The Fed reduced rates by 50 basis points, expecting a weakening labor market. Job Market Rebound: October 2024: Only 12,000 jobs were added, aligning with Fed expectations. November 2024: A surprising recovery with 227,000 jobs added. December 2024: Further growth with 256,000 new…

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Filed under: News - @ January 14, 2025 9:26 pm