Despite the strong financial liquidity, Trump’s potential tariff policy could disrupt the markets. A strong US dollar can encourage foreign central banks to sell American assets to defend their currency. This could increase the interest on government bonds in the long term (TNX), reduce liquidity and put pressure on shares and bonds. Although the S&P 500 could initially rise as a result of strong liquidity, higher interest rates on government bonds in 2025 could cause a headwind.
This financial liquidity is likely to have consequences for raw materials and digital assets. Gold is almost traded at record level, while the oil market still experiences intense volatility. In addition, Bitcoin reached a record high of around $ 109,300 before it returned to $ 103,000. A support of about $ 100,000 in Bitcoin would confirm the strong liquidity on the financial markets.
The strong volatility in Bitcoin is confirmed by the considerable resistance on the two -year trend line around $ 110,000 and the formation of an increasing, wider pattern at this resistance level, as shown in the graph below.