The US dollar fell while Bitcoin hit an all-time high on Monday ahead of Donald Trump’s inauguration as US President, with investors focusing on policy announcements that are expected to have an immediate impact on the greenback.
The yen also fell slightly, but still held onto a one-month high hit on Friday, as investors expect the Bank of Japan to raise interest rates this week.
Trading volume is expected to be low as US markets are closed for the Martin Luther King Jr. Day holiday.
Softer US inflation data and the prospect of more Federal Reserve rate cuts have recently boosted risk assets, including Bitcoin, which hit a high of $109,071.86 on Monday before falling to $107,120, up 4.2%.
Trump has pledged to be a “Crypto President”, and is expected to issue an executive order to promote widespread adoption of digital assets.
Some analysts now fear that delays in US policy implementation could trigger a “sell on the news” reaction, potentially disrupting the positive momentum.
Investors are now focused on the policies Trump is expected to announce on his first day in office. At a rally on Sunday, Trump said he would impose strict restrictions on immigration.
