With inflation concerns and bond yields rising, analysts warn of significant crypto market fluctuations surrounding Trump’s inauguration, despite potential crypto-friendly policies.

Donald Trump‘s inauguration is less than a week away, and analysts are now bracing for “heightened volatility” in the crypto market. Singapore-based QCP Capital suggested in its latest report that, similar to 2017, Trump’s actions are already shaking global markets before he officially takes office on Jan. 20.

Inflation is still a major concern for the U.S. economy. While job growth exceeded expectations, with non-farm payrolls coming in at +256,000 versus the expected +165,000, inflation remains a worry. “While CPI appears to be moderating above the 2% target…market participants still expect December’s CPI to come in higher than the previous reading,” the analysts warn.

Additionally, Trump’s planned tariffs on China are fueling those inflation fears, though they may be rolled out gradually instead of immediately. QCP pointed out that markets are now pricing in just two rate cuts for 2025 and 2026, as bond yields rise.

“Expect heightened volatility before and after the inauguration as markets digest and adjust to a new term under Trump.”

QCP Capital

Despite the uncertainty, there’s some hope for crypto investors. QCP notes that Trump’s administration has crypto-friendly officials, and “rumors that Trump will enact wide-ranging and crypto-friendly executive orders provide a short-term tailwind, potentially supporting prices.”

Still, analysts are cautious. Bitcoin’s (BTC) $90,000 level has been tested several times, and with rising bond yields globally, the next few weeks could bring messy and unpredictable market moves.