Trump's Fluctuating Policies Dampen Market Concerns Amid Global Uncertainty

Trump’s policy stance has experienced a dramatic shift in a short period, creating waves of reactions across global financial markets. The change from a hawkish approach to European interest rates to a more accommodative stance within three days indicates policy volatility that triggers investors’ recalculations across various sectors.

Sudden Correction: From Firmness to Reconciliation in 72 Hours

The decline in the US stock markets was strong enough to prompt a revision of Trump’s strategy. This turnaround suggests that market dynamics have a significant influence on decision-making at the highest levels. Although it appears to be a tactical retreat, this change provides relief for market participants who were previously tense, anticipating further tariff escalations. The market focus now shifts to substantive issues such as the legality of tariff implementation under the International Emergency Economic Powers Act (IEEPA) and the Federal Reserve’s future monetary policy orientation.

Federal Reserve Uncertainty and Interest Rate Dynamics

To date, Trump has not announced his final choice for the Federal Reserve Chair position, although he previously indicated that a decision had been made. This status quo creates uncertainty in the bond markets, where investors cannot fully predict the medium-term monetary stance. Meanwhile, discussions about the possibility of a rate hike by the Bank of Japan add further dynamics to the carry trade sector, with potential impacts on risk assets including cryptocurrencies.

Japan’s Interest Rates: Hawkish Stance Amid Moderate Projections

The probability of the BoJ raising interest rates in January remains low, but a hawkish sentiment is expected to be embedded throughout 2026. Projections indicate that Japanese interest rates will stay at or above 1% at least until the end of the year. This dynamic exerts indirect pressure on high-leverage assets, including speculative positions in the crypto market.

Bitcoin Begins to Stabilize with Decreasing Volatility

Real-time data shows Bitcoin has decreased by 4.37% in the last 24 hours, with a trading volume reaching $1.55 billion. Following the resolution of Greenland tariff concerns, asset turnover rates have started to decline, especially since Wednesday when investors adopted a more cautious stance. Overall market sentiment remains balanced, with no significant negative catalysts expected to emerge this week.

Bitcoin Market Structure: Optimistic but Needs Consolidation

The current Bitcoin market structure appears healthy, with some investors beginning to identify short-term trading opportunities. However, the price action foundation at current levels is still forming and requires additional time for full confirmation. Investors are advised to remain vigilant and conduct ongoing observation before taking large exposures.

Projections: Trump Policies and Long-Term Implications

Trump’s policy trajectory will continue to be a key determinant in the evolution of the crypto and equity markets. Stabilization of policymakers’ stance—both on tariffs and monetary policy—will boost confidence for risk-on positioning. However, the fundamental structure still needs time to solidify, making the coming weeks a critical period for monitoring.