Matrixport Market Watch: Trump returns to White House, Google searches for crypto assets hit record high

In the past week, BTC prices have generally shown a volatile upward trend. Affected by macro data (USD index, non-agricultural data, CPI), market information (such as the US Department of Justice being allowed to liquidate BTC seized in the Silk Road case), and political factors (Trump taking office), BTC prices have fluctuated greatly in the past week , the lowest fell below 90,000$ and the highest was 109,588$, setting a new ATH. The current BTC price is around 102,000$ (the above data is Binance spot 15:00 real-time data).

Previously, the Trump family’s MEME Coin, headed by TRUMP, swept the market. Later, Trump’s inauguration did not mention crypto assets. The market generally believes that this week is an exciting and closely watched week. The executive orders signed intensively by Trump are not only related to the subsequent trend of crypto assets, but also determine the future development of global macro assets.

market analysis

The BTC market adoption rate exceeds that of the Internet and mobile phones , and the popularity of crypto assets continues to rise

A report released by BlackRock on January 14 showed that BTC adoption is outpacing past transformative technologies, including the Internet and mobile phones. The report highlights that since its launch in 2009, BTC has rapidly developed from a niche innovation to a globally recognized asset. Regarding economic shifts, trends such as rising inflation, geopolitical tensions, and concerns about the traditional banking system highlight the value of BTC as a decentralized asset. As the global economy digitizes, BTC is becoming an integral part of the evolving financial landscape. At the same time, the younger generation’s familiarity with technology and preference for digital-first solutions have made it a leading demographic in cryptocurrency adoption.

Cryptoasset Google search index hits all-time high

On January 21, Google Trends data showed that the Google search volume for "How to buy crypto" hit a record high, reaching a peak of 100. This is the first ATH in 4 years, in which searches for “How to buy trump coin” continue to rise.

After the upsurge of $TRUMP, it may trigger a crisis of confidence amid the MEME coin carnival.

On the eve of Trump’s inauguration, his team’s release of $TRUMP triggered a market frenzy. With the astronomical growth rate and compliance exchanges being the first to be listed, the market’s expectations for the “crypto president” have reached their peak, and the influence of the United States in this rising cycle has also increased. Against the backdrop of the crypto market and public expectations that Trump might launch a new crypto-friendly policy, the Trump team launched a new MEME coin $MELANIA, which shocked the market and caused $TRUMP to plummet.

As the market acceptance of crypto-assets such as BTC increases, how to maintain the formalization of crypto investments is an issue that the market needs to solve. $MELANIA takes over $TRUMP. The meaning behind it is self-evident. The naked "opportunism" superimposed on the previous work has sucked away market liquidity. Where will the next market catalyst be?

Industry trends

Trump has officially taken office as president, and this term started against the background of extremely strong economic performance in the United States, and market inflation is expected to be very bad. At the same time, the market generally believes that Trump may have more unstable but direct policies in terms of tariffs, immigration, fiscal expenditures and even personnel changes.

CPI & non-agricultural data improved, and global markets closed steadily last week

According to data on January 11, the number of initial job applications in the United States increased, but the number of layoffs was at a low level in the market, and the job market overall showed a resilient and healthy state. On January 15, US CPI data was released. The non-seasonally adjusted core CPI annual rate in December was 3.2%, lower than expected and the previous value of 3.30%, the lowest since August 24; the U.S. non-seasonally adjusted CPI annual rate in December was 2.9%, in line with market expectations. The cooling of core CPI eased market concerns about rising inflation in the United States, and global markets responded quickly. But the Fed still faces loose financial conditions, a strong underlying economy and thorny inflation problems.

Trump plans to impose 25% tariffs on Mexico and Canada by February 1

On Monday night, Trump said in response to a reporter's question: "We are considering imposing a 25% tariff on Mexico and Canada because they allow a large number of people to enter the United States, and I think we will implement it on February 1st." Mexico and Canada both said , they will retaliate against U.S. goods if Trump imposes tariffs on them. Trump's proposed tariffs on neighboring countries could have a "catastrophic" impact on the U.S. auto industry and Detroit automakers, which import large numbers of vehicles from Canada and Mexico.

Trump said Canada "is a very bad abuser" and complained about the influx of fentanyl and immigrants from the northern border. At the same time, Trump did not say that he would immediately impose tariffs on China, and the A-share and Hong Kong stock markets showed a slight "relief". The offshore yuan edged down 0.2% but held on to most of Monday's gains.

The United States has a clear attitude towards embracing crypto-assets, with many states submitting BTC-related bills

The SEC is ready to move forward with crypto policy reforms as soon as Trump takes office.

On January 15, Reuters reported that the SEC’s top Republican officials are preparing to begin reforming the agency’s cryptocurrency policy as early as next week after Trump takes office. According to the information, the measures being considered by Commissioners Hester Peirce and Mark Uyeda include initiating relevant procedures and eventually developing guidance or rules to clarify the circumstances under which the agency considers cryptocurrencies to be illegal. for securities and review some of the cryptocurrency enforcement cases pending in the courts.

At the same time, the Texas senator submitted the SB 778 bill to establish a state-level Bitcoin strategic reserve; the Wyoming representative submitted a legislative proposal for a strategic Bitcoin reserve; and Massachusetts introduced two more bills on the Bitcoin strategic reserve.

Disclaimer: The above does not constitute investment advice, an offer to sell or a solicitation of an offer to buy to residents of the Hong Kong Special Administrative Region, the United States, Singapore and other countries or regions where such offer or solicitation of offers may be prohibited by law. Digital asset trading can be extremely risky and unstable. Investment decisions should be made after careful consideration of individual circumstances and consultation with a financial professional. Matrixport is not responsible for any investment decisions based on the information provided in this content.