American interest rate decision and meeting of the Federal Open Market Committee to determine encrypted currency trends

The encrypted currency market witnessed a significant increase and a significant purchase activity after Donald Trump returned to the White House. With Trump signing many executive orders that support the encrypted currency market, more people are interested in trading. Next week is important for the market because the Federal Open Market Committee (FOC) and its decisions on interest rates, along with other major economic news, are likely to affect future trends in the market.

The markets remain fixed and emerging under the new Trump policies

Everyone has focused this week on the policies of US President Trump after assuming his post, and the markets seem to deal with them well so far. Instead of causing anxiety, his statements make people actually more optimistic. He talked about large investment in artificial intelligence (AI), making major changes in cryptocurrency policy, maintaining low interest rates, and controlling inflation by lowering oil prices. This investors encouraged more risks, which led to the S&P 500 index reaching a new standard.

Read also: Bitcoin prices for 2025: Will BTC break $ 109,000 and reach the highest new level ever?

As we approach a new week, there are many important events that can form future trends for the digital currency market.

The fourth quarter profit season in the United States

Next week, major technology companies such as Microsoft, Meta Platforms, Tesla and Apple are scheduled to announce their profits. Analysts expect that these main players, along with three other large companies, will witness growth in their profits by more than 17% during the next year, which is nearly twice the expected growth by 9% of the other 493 companies.

Since these companies are very appreciated, investors are likely to search for more than just numbers of profit and revenue.

The Federal Open Market Committee (FOMC) meeting

It is widely expected that the Federal Reserve will keep the main interest rate without changing this Wednesday while waiting for more information that inflation is a decrease.

At the World Economic Forum in Davos, Switzerland, Trump said he would insist on immediate discounts in interest rates worldwide, and reconsider his repeated but ineffective pressure on the Federal Reserve during his first term. Early from his second term, Trump has already tightened immigration procedures and announced plans to increase taxes on imports as of February 1.

This creates a state of uncertainty for the Federal Reserve, which makes it difficult for them to plan monetary policy. The Federal Reserve meets soon and is expected to maintain the current interest rate between 4.25%and 4.50%, as the recent data supports the gradual approach to reaching the target of inflation of 2%.

The President of the Federal Reserve, Jerome Powell, and his team, are facing the challenge of budget for the current monetary policy with uncertainty about the future and determining the amount of what must be revealed on the expectations of the Federal Reserve Bank.

The basic personal consumption expenses index in the United States

In November, the prices of total personal consumption expenditures in the United States increased by 2.4% compared to last year, which is more than the lowest level in three years, which amounted to 2.1% in September. The basic personal consumption expenses index, which is used by the Federal Reserve to measure basic inflation, increased by only 0.1 % – which is the lowest six months increase. This kept the annual basic consumption expenses stable at 2.8 % in December, which is less than expected at 2.9 %.

Looking at the future, the total personal consumption expenditures will increase to 2.6% on an annual basis, which will be announced on Friday. It is also expected that the basic inflation rate for personal consumption expenses will remain stable at 2.8%.

European Central Bank decision on the interest rate

It is expected that the European Central Bank will reduce interest rates by 0.25% at its next meeting on January 30, bringing the interest rate to 2.75%. This will be the fifth reduction in the interest rate since June 2024, with the aim of supporting economic growth.

conclusion

With the possibility of the Federal Reserve temporarily stopping, the European Central Bank’s willingness to reduce interest rates, and the continued pro -encrypted currency signals, it appears that the encrypted currency market is in a position that is generally allowed to come. However, merchants should be ready for the fluctuations surrounding the Federal Open Market Committee to announce the main companies’ profits.