Trump’s Latest Jab Sends Markets Into a Tailspin—Again

Another day, another volatility spike courtesy of political theater. The former president’s renewed threats lit a fuse under already jittery markets—just as algo-traders were getting comfortable.

Wall Street’s ’Trump premium’ is back: that special blend of chaos arbitrage and performative outrage that turns every tweet into a trading signal. Never mind fundamentals—this is pure headline roulette.

Funny how crisis capitalism always finds a way to monetize the circus. Maybe next we’ll see a ’Political Volatility ETF’—because nothing says ’hedge’ like betting on dysfunction.

Impact of U.S. Data on Cryptocurrencies

Recent behaviors by Trump, particularly his provocative statements on Fridays, have become a recurring phenomenon. His latest comments accused China of violating agreements, hinting at his readiness to abandon diplomatic concessions, which may stir further market declines. Over the weekend, Trump’s narratives tend to assume that investors will manage to stabilize sentiment, but they often introduce fresh volatility instead.

In parallel with Trump’s actions, the Federal Reserve’s (Fed) primary inflation gauge, the Personal Consumption Expenditure (PCE) data, was released. The PCE indicated an inflation rate at 2.1%, slightly under the predicted 2.2%, and down from 2.3% previously, shaping expectations regarding interest rates and monetary policy. Fed Chair Jerome Powell has maintained a defensive stance due to the ongoing trade war, which poses the risk of broader economic disruption.

Despite favorable inflation data, investor sentiment remains dampened. Bitcoin$105,903 momentarily surpassed the $105,700 mark, but concerns about tariffs continue to pose a threat. Should China escalate its rhetoric, market reactions to the PCE could be postponed, affecting investor decisions.

The conditions for a reduction in interest rates appear favorable, absent any tariff-related hurdles. In such a scenario, a rate cut exceeding 100 basis points could lead to an unprecedented bullish phase for cryptocurrencies. However, market participants are currently focused on anticipated agreements and a crucial deadline on July 9 as they seek clarity on tariffs.

The Fed has committed to reducing rates when inflation reaches 2%. Recent discussions with TRUMP brought inflation close to this threshold, increasing pressure for a cut. Hence, upcoming Fed announcements will be crucial in assessing direction.