Viewpoint: The expectation of the Federal Reserve's interest rate cut will provide support for risk assets such as cryptocurrencies

In January 2025, the market will face multiple risks and opportunities against the backdrop of Trump's inauguration and the release of non-farm data. Michael Rosen, Chief Investment Officer at Angeles Investments, pointed out that November to January is usually a strong period for the market. Historical data shows that the SP 500 index performs well in the last five trading days of December and early January, known as "Santa Claus Rally". The upcoming employment data and company earnings reports will provide a key perspective on economic health.

Helen Given, Deputy Director of Trading at Monex USA, emphasized that new government appointments are usually accompanied by high uncertainty. Trump administration's trade policies could have a significant impact on global currency markets; it remains to be seen what effect policy implementation will actually have. Given believes investors need to pay attention to how proposed policies are actually implemented as this may affect currencies such as Euro, Mexican Peso and Canadian Dollar.

Damon Polistina, Research Director at Eaglebrook Advisors mentioned that pro-cryptocurrency Trump administration could bring positive catalysts for cryptocurrency markets. The Federal Reserve's expected interest rate cuts might support risk assets like cryptocurrencies; any positive economic data would further drive market momentum.