From January 6 to 10, the virtual asset market showed a downward trend, affected by President-elect Donald Trump's strong stance on tariff policies and weakened prospects for interest rate cuts. For the time being, policy uncertainty is expected to increase, expanding the volatility of the virtual asset market.
As of 4:40 p.m. on the 10th, Bitcoin traded at $94,632, a 1.68% decrease from a week ago. Just on the 7th, it maintained a value of $100,000; however, speculation that the U.S. Federal Reserve would not pursue interest rate cuts led to a sharp decline, briefly falling to around $91,000 on the 10th.
At a similar time, Ethereum traded at $3,306, down 3.71% from a week ago. However, Suile experienced a 10% increase, marking the only double-digit gain among altcoins. Most coins, including Mantra and Leo, showed an increase of less than 1% and struggled to avoid a downward trend.
The virtual asset market rose due to the "Trump effect," but is now showing a decline owing to the President-elect's tariff policies. Earlier, President-elect Trump firmly denied the possibility of reducing tariffs and indicated that he could consider import tariff regulations through the International Economic Emergency Powers Act (IEEPA) by declaring a national economic emergency.
Choi Seung-ho, a researcher at the Research Institute, noted, "As input prices in the service sector hit a two-year high, concerns are growing that the timing of the Federal Reserve's interest rate cuts may be delayed" and added, "If President-elect Trump's aggressive tariff policies materialize, it will add further pressure on interest rate cuts due to inflation concerns."
◇ Ripple CEO dines with Trump... hopeful for favorable policies
Brad Garlinghouse, CEO of Ripple, said on the 8th, "It was a great dinner" while sharing a photo of the dinner with President-elect Trump. Ripple's Chief Legal Officer, Stuart Aldeotti, also attended the dinner. Ripple contributed $5 million in digital assets to Trump's campaign in the last election. The virtual asset market interprets this dinner as an important signal for regulatory easing and revitalization of the industry.
Ripple investors expect that as Ripple's market position rises, the risks associated with legal disputes will decrease. A representative from the Research Institute stated, "This movement is seen as a significant opportunity for restoring overall trust in the virtual asset market along with a rapid favorable change in the regulatory environment."
◇ Bitcoin rises as a strategic asset
This year, central banks and sovereign wealth funds worldwide have adopted Bitcoin as a strategic asset. As the United States shows moves to treat Bitcoin as a reserve asset, the interest from other countries is also rising.
A report from Fidelity Digital Assets released on the 7th forecasts that several countries will adopt Bitcoin as a strategic reserve asset this year, ushering the virtual asset market into a new phase. Matt Hogan, a Fidelity analyst, stated, "More central banks, sovereign wealth funds, and government treasuries from various countries will take strategic positions in Bitcoin," noting that the successes of Bhutan and El Salvador will have a significant impact. He analyzed that "countries facing challenges such as inflation, currency depreciation, and fiscal deficits may consider Bitcoin as an alternative asset."
With the success of Bitcoin and Ethereum exchange-traded funds (ETFs), it is anticipated that more managed digital asset products will be launched this year. After the U.S. Securities and Exchange Commission (SEC) approved the Bitcoin spot ETF in January of last year, approximately $35 billion flowed into the market over the course of a year. The total assets under management for Bitcoin ETFs in the U.S. surpassed $129 billion, briefly exceeding the assets under management for gold ETFs.
A representative from the Research Institute stated, "The traditional financial sector is expected to introduce a variety of financial products utilizing digital assets, thereby expanding the market size."
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