The global markets are faced with a turbulent week after the announcement of the Friday price of US President Donald Trump sent US stock contracts falling and triggered massive cryptographic liquidations, reporting concerns about interest rates highest extended.
Dow Futures dropped 1.2% Sunday at the end of Sunday, while S&P 500 and Nasdaq Futures dropped 1.9% and 2.7% after announcement 25% prices on Mexican and Canadian products and 10% of Chinese imports. These should come into force Monday at 12:01 p.m. on Monday.
Bitcoin and Ethereum have flowed respectively 5% and 10% while Dogecoin and XRP are down 19% each.
The cryptographic markets, negotiated 24/7, have become early indicators of broader feeling of the market. The drop in the term markets and the crypto suggest that traders expect significant turbulence when the American markets open on Monday.
The upheaval precedes crucial profits a week, with more than 120 S&P 500 companies reporting results. Market observers warn that sustained trade tensions may have a significant impact on business profits and growth expectations for the coming year.
“There would always be an additional volatility at the start, Trump says that he is trying to stop the fentanyl flow across Mexico and Canada,” Director of Investments at Crypto Fund, Merkle Tree Capital, told Ryan McMillin, Merkle Tree Capital, Merkle Tree Capital, told Decipher.
“In the short term, we have the bottom. Market manufacturers have used this cycle of new prices to sweep long long and there is now very little liquidity worthy to lower the price, ”said McMillin.
The announcement sparked more than $ 2.1 billion in cryptographic liquidations in the past 24 hours, according to Coinglass data. Bitcoin fell at $ 96,300, its lowest in three weeks, while Ethereum dived about $ 2,800, erases the gains made since early November, according to Coigecko data.
Recent prices are likely to lead to increased inflation, which could alleviate the feeling of investors in the crypto, according to Nick Forster, founder of Deviative Protocol, drifts.
“We are already seeing signs of increased volatility on the market, because the implicit volatility of 30 days of the BTC increased by 4% to 54% following these rates and broader economic uncertainty,” said Forster Decipher. “We expect this volatility to persist when more negative catalysts are probably taking place in the coming weeks.”
The reaction of the market reflects the concerns according to which the prices could force the federal reserve to maintain higher rates throughout 2025. Inflationary import costs and the disturbances of the supply chain reduce the probability of decreases rate this year.
“The fact is that we are simply entering an unprecedented period of political support for the crypto and there is a huge degree of uncertainty about how the pricing war will take place,” said Pav Hundal, principal analyst of the Australian Crypto Exchange Swyftx, said Decrypt.
“We have non -agricultural payroll and unemployment rate this week and I expect the market to be hyper sensitive to any surprise for the rise or the decline. We will have more clarity very soon on the probability of any risk of reducing the note, “he said.
Higher rates for longer rates may have an impact on borrowing on the main markets leading to risk appetite, especially for crypto. Or it is thought.
“As inflationary pressures increase, the Fed can maintain or even increase interest rates, which has historically led to less favorable conditions for cryptographic assets. This could lead to a contraction of the digital asset sector during Next quarters, “added Forster de Derive.
Some pains
Trade partners have announced quick reprisals. Canada has imposed prices from 25% to 15% out of $ 155 billion in American products, while Mexico has promised countermeasures and China is planning a trial for the World Trade Organization.
US dollar figures jumped in the first hours of Asian negotiations, pushing the Canadian dollar to its weakest in nine years. The euro has dropped to its lowest since November 2022, according to the IMF data.
“Will there be pain? Yes, maybe (and maybe not!)”, The president said On social networks, commenting on reactions at his prices.
These Trump prices “rocked cryptographic markets, leading to around $ 700 million + long liquidations” as “uncertainty is looming” Dominick John, analyst at Kronos Research, said Decipher.
US companies with significant international exhibition faces special pressure. The discretionary sectors of technology and consumers, which are highly dependent on world supply chains, show increased vulnerability in pre-commercial trade.
Although caution is justified, some believe that the reaction of the market is exaggerated.
“Trump did everything possible to link this series of prices to fentanyl trade, involving Canada, Mexico and China,” algorithmic algorithmic algorithmic business based in Singapore told Singapore Decipher.
Chung has suggested that the prices are delivered with an implicit output strategy – if Mexico, Canada and China strengthen their controls on production and trafficking in fentanyl at a level that satisfies Trump, the prices could be lifted.
“We will see how it goes. I have the feeling that commercial tension could spread earlier than people think, “he said.
Publisher’s note: Add additional comments from Hundal and Chung. UPDATE
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