Trump Allies Advocate Rate Cuts

Find out our latest reports, listed below:

• Bybit x Block Scholes: “2026: It's Different This Time?”

• Tokenised Markets on Bitget UEX: Unlocking Real-World Assets On-Chain for 24/7 Global Access

• DeepBook - “The Backbone of Sui DeFi Liquidity”

• Premia x Block Scholes: Introducing Kyan

Market Snapshot: Overnight Moves

Daily Updates:

• Yesterday’s trading session yielded mixed results across asset classes, with markets turning their attention today to the Supreme Court’s ruling of President Trump’s tariffs and the BLS’s Nonfarm payrolls report. 
• The Supreme Court scheduled todayas an opinion day, indicating that it will be the first chance for a ruling on Trump’s global tariffs.

• BTC traded within a narrow band of $89K and $91K throughout the day and currently changes hands at $90K. 
• U.S. spot Bitcoin ETFs logged $398.9M in net outflows on Thursday, extending withdrawals to three straight sessions—roughly $1.12B out since Tuesday, while spot Ethereum ETFs also saw $159M outflows.
• In the meantime, XRP ETFs rebounded to $8.72M of net inflows yesterday, compared to Wednesday’s $40.80M outflow.
• Solana ETFs extended their inflow to an eighth consecutive day, while DOGE ETFs recorded $333.83K of net inflows yesterday.

• Sentiment in crypto derivatives markets remains mixed. BTC and ETH short-tenor futures-implied yields, which measure the premium traders are willing to pay for leveraged exposure, are close to 6% and perpetual swap funding rates show longs paying a small funding fee to shorts. However, 7-day volatility smiles for the two majors are both skewed towards out-the-money put contracts. For BTC, OTM puts trade at a 4% premium over calls, while for ETH, the smile is skewed just under 3% towards downside protection. 

• Similar to BTC, yesterday the S&P 500 was little changed, though the tech-heavy Nasdaq-100 ended three days of gains to trade 0.57% lower. 
• Defense stocks caught the largest bid on Thursday amidst President Trump’s call for a more than 50% increase in defence spending on the current year’s record budget of $901B. On Truth Social he wrote, “I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars”. That would enable the US to have a “dream military” and would be paid for by tariffs, according to Trump. 
• Defensive stocks such as Lockheed Martin Corp rallied 4%, while Northrop Grumman Corp rose more than 2% following the message. 

• Continued geopolitical tensions are also on investor’s watchlists, with President Trump potentially looking to annex Greenland and bring it under US control, as well as developments around Venezuela. Earlier in the week, Trump said that the South American nation would relinquish as much as 50M barrels of oil to the US, worth $2.8B at current market prices. 
• The selloff in precious metals also abated yesterday. Spot silver price found a local bottom at $74 per ounce and has since rebounded to $78 per ounce, while spot gold rebounded from $4,420 an ounce and now trades above $4,470. 

• President Trump’s loyalists have continued to advocate for more interest rate cuts in the near future. Treasury Secretary Scott Bessent said that “We are still substantially above the neutral rate, and I think that we should not be in restrictionary mode.” 
• According to Bessent, “most models would show 2.50 to 3.25” as an appropriate level for the current federal funds rate — that compares to the current target range of 3.5% to 3.75%.
• Additionally, Fed Governor Stephen Miran said on Bloomberg TV that he is “looking for about a point and a half of cuts”, a forecast that is driven by his view on inflation. According to Miran, “Underlying inflation is running within noise of our target, and that’s a good indication of where overall inflation is going to be going in the medium term.”
• Miran also said his more dovish view on monetary policy stemmed from the fact that the Fed had held rates too high for too long in the past — “If we hadn’t been keeping policy, in my view, too tight over the last year or so, it wouldn’t be necessary to provide that kind of accommodation”. 

• Wall Street and crypto policy leaders held a private meeting on Thursday, Jan 8, 2026, to resolve the remaining disagreements over the Senate’s crypto market structure bill ahead of a Senate Banking Committee markup hearing scheduled for Thursday, Jan 15, 2026.
• The key points in negotiations over the bill are how it treats DeFi and renewed lobbying pressure around yield-bearing, dollar-pegged stablecoins, despite the GENIUS Act having already established a federal stablecoin framework last summer.

‍

This Week’s Calendar:

‍

Charts of the Day:

‍