The cryptocurrency market saw a surge and lots of buying activity after Donald Trump returned to the White House. With Trump signing several executive orders supporting the cryptocurrency market, more and more people are becoming interested in trading. Next week is important for the market, as the Federal Open Market Committee (FOMC) meeting and interest rate decisions, along with other major economic news, will likely influence future market trends.
Markets remain stable and bullish despite Trump’s new policies
This week, everyone’s focus has been on US President Trump’s policies after he takes office, and it looks like the markets are doing pretty well so far. Instead of causing worry, his announcements make people more optimistic. He talked about significant investments in artificial intelligence (AI), making significant changes to crypto policy, keeping interest rates low, and controlling inflation by reducing oil prices. This encouraged investors to take more risk, helping the S&P 500 hit a new record high.
Also Read: Bitcoin Price Prediction 2025: Will BTC Surpass $109,000 and Hit a New All-Time High?
As we enter a new week, several important events could shape future trends in the cryptocurrency market.
US Q4 earnings season
Next week, major tech companies like Microsoft, Meta Platforms, Tesla and Apple are expected to report their results. Analysts predict that these major players, along with three other major companies, will see their profits increase by more than 17% over the next year, almost double the 9% growth expected for the other 493 companies.
Since these companies are highly valued, investors will likely be looking for more than the usual earnings and revenue numbers.
US FOMC meeting
The Federal Reserve is widely expected to keep its main interest rate unchanged on Wednesday pending further information showing inflation is falling.
At the World Economic Forum in Davos, Switzerland, Trump said he would insist on an immediate reduction in interest rates globally, reversing his frequent but ineffective pressure on the Fed during his first term. At the start of his second term, Trump has already tightened immigration and announced plans to increase import taxes starting February 1.
This creates uncertainty for the Fed, making it difficult to plan monetary policy. The Fed will meet soon and is expected to keep the current interest rate between 4.25% and 4.50%, as recent data supports a gradual approach to reaching its 2% inflation target.
Fed Chairman Jerome Powell and his team face the challenge of balancing current monetary policy with uncertainties about the future and deciding what to reveal about the Fed’s outlook.
U.S. Basic Personal Consumption Expenditures (PCE) Price Index
In November, overall U.S. PCE prices rose 2.4% from a year ago, an increase from the three-year low of 2.1% seen in September. The core PCE price index, which the Fed uses to gauge underlying inflation, rose just 0.1%, the smallest increase in six months. This helped maintain the base annual PCE rate at 2.8% in December, which was lower than the expected 2.9%.
Looking ahead, overall PCE is expected to reach 2.6% year-on-year, which will be announced on Friday. The core PCE inflation rate is also expected to remain stable at 2.8%.
European Central Bank (ECB) interest rate decision
The ECB is expected to cut interest rates by 0.25% at its next meeting on January 30, bringing the rate down to 2.75%. This would be the fifth rate cut since June 2024, intended to support economic growth.
Conclusion
With the Fed likely on pause, the ECB poised to cut rates, and Trump’s pro-crypto signals still fresh, the crypto market appears positioned for a generally bullish week ahead. However, traders should prepare for volatility around the FOMC announcement and major company earnings releases.
