As 2025 begins, markets are uncertain ahead of President-elect Donald Trump's inauguration, with risk assets pulling back due to rising US bond yields. Bitcoin's recent surge towards $100,000 has reversed, showing a 6% decline over the past month, while other cryptocurrencies have suffered more significant losses. The increase in US Treasury yields—hitting a 14-month high for 30-year bonds—has applied pressure on growth-oriented assets, including cryptocurrencies. Historically, Bitcoin has shown a negative correlation with US interest rates due to liquidity concerns. Despite a third rate cut by the Federal Reserve in December 2024, the slower pace of future cuts has increased market uncertainty. Experts suggest that the so-called Trump trade could still benefit cryptocurrency markets due to supportive appointments and the potential for falling interest rates. However, worries about the US deficit and possible tariff conflicts are dampening sentiment. Overall, while there is optimism regarding the long-term impact of Trump's presidency on Bitcoin, current market dynamics reflect volatility and caution.

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