Trump's Crypto Boost: FOMC Awaits, Earnings Season Looms

The cryptocurrency market has witnessed significant growth and increased trading activity following the return of Donald Trump to the White House. His signing of several executive orders supporting the cryptocurrency market has sparked greater interest in trading. The upcoming week is crucial for the market, as the Federal Open Market Committee (FOMC) meeting and decisions on interest rates, along with other major economic news, are likely to influence future market trends.

Markets have remained steady and bullish under Trump's new policies. His announcements, including big investments in artificial intelligence (AI), significant changes in crypto policy, keeping interest rates low, and controlling inflation by reducing oil prices, have encouraged investors to take more risks. This has led to the S&P 500 reaching a new record high.

As we enter a new week, several important events could shape the future trends of the cryptocurrency market. The US 4Q earnings season is set to begin, with major tech companies like Microsoft, Meta Platforms, Tesla, and Apple reporting their earnings. Analysts predict that these companies, along with three others, will see their earnings grow by more than 17% over the next year, almost double the 9% growth expected from the other 493 companies. Investors will likely look for more than just the usual profit and revenue numbers due to the high valuations of these companies.

The US FOMC meeting is scheduled for this Wednesday, with the Federal Reserve widely expected to keep its main interest rate unchanged. The Fed is waiting for more information showing that inflation is decreasing. At the World Economic Forum in Davos, Switzerland, Trump said he would insist on immediate cuts to interest rates globally. Early in his second term, Trump has already tightened immigration and announced plans to raise import taxes starting February 1. This creates uncertainty for the Fed, making it challenging for them to plan monetary policy. The Fed is expected to maintain the current interest rate between 4.25% and 4.50%, as recent data supports a gradual approach to reaching their 2% inflation target. Fed Chair Jerome Powell and his team face the challenge of balancing current monetary policy with uncertainties about the future and deciding how much to reveal about the Fed's outlook.

In November, the overall PCE prices in the US went up by 2.4% compared to last year, which is an increase from the three-year low of 2.1% seen