Trump Policies Shake Markets; Bitcoin Plunges; Gold Rallies Ahead of Central Bank Week

The market is digesting the Trump series of new policies, and multiple economic data will be released this week. Last week, U.S. stock indexes rose for four consecutive days before falling back on Friday, but all recorded a second consecutive week of gains. The S&P rose by 1.74%, the Dow rose by 2.15%, and the Nasdaq rose by 1.65%. Among large-cap tech stocks, only Tesla and Apple closed lower, falling by 4.7% and 3.1% respectively.

The crypto market continued to fluctuate downward, with Bitcoin briefly surpassing $109,000 on Tuesday, Presidential Inauguration Day, hitting a new all-time high before pulling back. However, supported by a series of friendly executive orders by the President, the overall market stayed around $105,000 last week. This morning, influenced by a broad decline in U.S. stock index futures, Bitcoin plunged by nearly 3.6% to drop below $101,000, essentially erasing the gains of the past seven days. Led by Bitcoin's decline, the altcoin market collectively experienced a significant drop, with the AI and meme sectors leading the decline, signaling a predominantly bearish market sentiment.

In terms of commodities, the U.S. Dollar Index fell by over 0.5% on Friday and recorded a weekly decline of about 1.7% last week, marking a new one-month low and the largest weekly drop in over a year. Due to President Trump's commitment to significantly boost oil production and calls for OPEC to lower oil prices following his inauguration, oil prices continued to fall. Spot gold, driven by a weakening U.S. dollar and the uncertainty surrounding Trump's policies, rose by nearly 3% last week, achieving a four-week winning streak.

This week, the "Super Central Bank Week" is approaching, with the Federal Reserve, European Central Bank, and other central banks set to sequentially release interest rate decisions on Thursday. In addition, the GDP data for the fourth quarter of Europe and the U.S., the Core PCE inflation index, and earnings reports from tech giants like Apple and Tesla will also be released one after another. The market is taking a cautious stance towards the numerous risk events in the upcoming week.