China-U.S. Hotline: Trump Sees Stock and Bond Surge Before Inauguration, Bitcoin Rises to 105K
This year, after three weeks of turmoil in the market, both stocks and bonds rose on the eve of U.S. President Trump’s inauguration, marking the largest reversal in 18 months. Bitcoin surged to $105,865 yesterday, just a step away from its historic high of $108,353. Ethereum also reached a one-month high of $3,525 yesterday, although its increase remains disproportionate compared to Bitcoin.
Trump-Xi Hotline, Market Bets on Bullish Chinese ETFs
According to Bloomberg, Trump and Chinese President Xi Jinping discussed trade, TikTok, and fentanyl issues during their pre-inauguration call on Friday, which may set the tone for the relationship between the world’s two largest economies and major geopolitical rivals.
Trump wrote on his social platform:
“This call was very good for both China and the United States. Xi and I will do everything possible to make the world more peaceful and secure!”
China’s official CCTV stated that while Xi believes the differences with the U.S. are “inevitable,” the two countries can cooperate as partners and friends. Xi also expressed hope that the U.S. would handle issues surrounding Taiwan with caution.
Following the news, traders rushed to bet on bullish Chinese ETFs.
Stocks and Bonds Rise Before Trump’s Inauguration
Trump’s inauguration ceremony will take place next Monday (1/20), and bullish bets in the stock market continue, with U.S. stocks collectively closing in the green on Friday (1/17). The Dow Jones rose over 330 points, while the S&P and Nasdaq increased by more than 1%. Blockchain stocks strengthened alongside Bitcoin.
After experiencing three weeks of turmoil, the market exhibited optimistic sentiment this week, with both stocks and bonds rising, marking the largest reversal in 18 months.
Bitcoin Surges to 105K
Bitcoin surged to $105,865 yesterday, just a step away from its historic high of $108,353 set last December.
Ethereum also reached a one-month high of $3,525 yesterday, although its increase remains disproportionate compared to Bitcoin. JPMorgan recently predicted in a report that Bitcoin will retain its dominance over Ethereum and other cryptocurrencies through 2025.
(JPMorgan Prediction: Bitcoin’s Dominance Will Continue Until 2025, Naming Eight Key Reasons)
XRP has continued to rise due to U.S. regulatory developments, plans for deregulation, and the launch of stablecoins, achieving a weekly increase of 37%.
Risk Warning
Investing in cryptocurrencies entails a high level of risk, and their prices can be highly volatile; you may lose all your principal. Please carefully assess the risks.
