As investors pondered President-elect Donald Trump’s Treasury secretary pick Scott Bessent and prepared for Wednesday’s October PCE report, stocks rose on Monday. Meanwhile, Bitcoin gold correct as markets adjust to the latest economic outlook. Safe-haven assets decreased, with digital markets reporting US markets rising as Wall Street began a shorter Thanksgiving week. Trading was expected to dip Thursday and Friday due to market closures, while Key Square Group founder Scott Bessent, Trump’s Treasury Secretary nominee, was praised by investors for his calming influence on the market.
Trump Policies Take Effect, Stocks Rise
Stocks hit record highs. Positive views of Trump administration initiatives explain this rise. Tax cuts, deregulation, and pro-business policies work. Economic development and business investment may strengthen investor confidence.The Trump tax overhaul pact boosted stocks. Lower corporation taxes let companies keep more money for expansion, job development, and R&D. More profitable businesses have raised stock prices.Trump’s emphasis on bureaucracy reduction and American-friendly trade policy also appeals to investors. Markets expect trade wars will boost the U.S. economy in the long run.
Bitcoin Stabilizes Amid Regulatory Concerns
Traditional stocks rose, but Bitcoin and other cryptocurrencies fell. This shift is due to increased concerns about government regulation and Trump’s policies.The Trump administration wants stronger cryptocurrency controls due to privacy and security concerns. Investors fear SEC regulation of bitcoin exchanges and ICOs.Bitcoin has plummeted due to regulatory fears. Despite Bitcoin’s strength, investors are wary of government regulation and perhaps tighter oversight. The market is also affected by global economic uncertainty, which affects riskier assets like Bitcoin.
Gold Falls Amid Stock Optimism
Gold, a safe haven, has fallen. Gold, which investors usually buy during inflation, economic instability, and geopolitical conflicts, has been losing favor. Investor behavior has changed due to the surge in stock market performance spurred by confidence about Trump’s initiatives, which inspire economic growth. As U.S. stocks rise, especially with anticipation of tax cuts and deregulation, gold prices fall. Trump’s policies have strengthened the dollar, making gold less appealing as an investment. Stronger dollar lowers gold prices.Despite the recent drop, many investors still consider gold as a long-term inflation and economic instability hedge. Market sentiment regarding Trump’s economic ideas is lowering gold prices.
Pressure Nnow, Bullish Mid-To-Long-Term
With weeks of overheating, Bitfinex predicts Bitcoin will fall, as Bitcoin Gold correct in response to market adjustments. BTC leapt 47% and 130% year-to-date from $66,880 pre-election. The seventh-largest asset is Bitcoin at $1.9 trillion, surpassing Saudi Aramco. Silver/gold quarterly.Bitcoin increased long-term finances. $461K BTC, $73,666 ATH, $24,912 LTH/mo. Compared to March 2021 and 2024 peaks, experts predict distribution pressure is moderate. Sales rise with volatility.Hopeful investors drove three cycles. April 2021: 23.2% week-to-peak. Apri 2022. By May 2021, Bitcoin might reach $984 billion.
Periodically, some beat Bitcoin. Bitfinex reported Bitcoin up 50% from pre-election lows and 130% year-to-date. After $100,000-$90,000, ETF flows. Interest and price may hinder Bitcoin spot inflows. This week, US CPI and FOMC minutes may cut prices to boost sales. Higher OI reduces supply/demand. Oct. should see post-ATH OI. Stock up pre-range. ETF slowness, global news, and long-term returns reduce volatility.
Altcoin’s Rally As Bitcoin Corrects
Bitcoin’s drop helped altcoins, with most of the top 200 rising on Monday as traders switched to low-cap projects. Aelf (ELF) gained 68.9%, followed by Ethereum Name Service (ENS) at 26.7% and Lido DAO (LIDO) at 22.4%. The losers included meme currencies like Goatseus Maximus (GOAT), Peanut the Squirrel (PNUT), and Popcat (POPCAT), which fell 9.7%, 6.9%, and 6.6%, respectively. The cryptocurrency market cap is $3.27 trillion, and Bitcoin dominates at 57.3%.
Also Read: XLM Price Surge 55%, BTC $98K, HBAR 25%
In Summary
Stocks gained ahead of Scott Bessent, President-elect Donald Trump’s Treasury Secretary pick, and October PCE data before a short Thanksgiving week. Stocks soared as investors expected Trump’s tax cuts and deregulation would improve the economy. As Bitcoin Gold Correct, markets responded with optimism for equities while safe-haven assets like gold and Bitcoin fell. Economic optimism favored stocks over gold, and cryptocurrency limitations, especially Trump’s, impacted Bitcoin’s outlook.
Despite legislative restrictions that could make Bitcoin’s short-term success doubtful, some investors remain optimistic about its long-term potential. As Bitcoin traders exited, they turned to altcoins like Aelf and Ethereum Name Service. While Bitcoin and equities decreased in the short term, Trump’s pro-business policies and long-term economic growth expectations have continued to support them.
FAQs
What led to Bitcoin and gold correcting in the market?
Bitcoin and gold corrected as markets adjusted to Trump's economic policies. Regulatory concerns for Bitcoin and optimism in equities led investors to shift focus away from these safe-haven assets.
How have Trump’s policies impacted gold prices?
Trump’s policies, which strengthened the U.S. dollar and increased confidence in equities, made gold less appealing as a hedge, leading to a drop in gold prices.
What was the impact of Bitcoin’s correction on the broader cryptocurrency market?
Bitcoin’s decline encouraged traders to invest in altcoins, leading to significant gains for projects like Aelf and Ethereum Name Service while meme coins experienced losses.
How do investors view Bitcoin’s long-term potential despite current corrections?
While regulatory concerns and volatility pose challenges, many investors remain optimistic about Bitcoin’s long-term value, citing its resilience and growing market presence.
