TL;DR
- Trump’s inauguration and pro-crypto policies are expected to influence the crypto market, with potential positive regulatory shifts.
- The US initial jobless claims data released on Thursday could impact market sentiment, indicating economic hardship or recovery.
- The Bank of Japan’s interest rate decision and the US consumer sentiment report are key events that may affect Bitcoin and other cryptocurrencies this week.
As the crypto market braces for a week of significant economic events, investors are on high alert. Several key macroeconomic data releases and policy decisions are expected to influence market sentiment and price movements. Here’s what you need to know.
In less than 24h we will see Trump become the first pro-crypto US president, and Gary Gensler just resigned.
So where's the market headed?
Let's dive in.
1/🧵
— Kiryoko-chan (@0xKiryoko) January 20, 2025
Trump’s Inauguration and Pro-Crypto Policies
Monday, January 20, marks the Martin Luther King Jr. holiday in the US, but it also represents an important day for crypto market participants due to Donald Trump’s inauguration. Trump has committed to signing a series of industry-favoring executive orders on his first day in office.
His pro-crypto stance, including a lighter regulatory touch around cryptocurrencies, has fueled speculation about potential positive regulatory shifts. This has heightened interest in Bitcoin among American investors, although some remain cautious, bracing for impact in either direction.
Initial Jobless Claims
On Thursday, the US will release its initial jobless claims data, revealing how many residents filed for unemployment benefits last week. The previous report showed an increase to 217,000 claims, surpassing initial estimates.
If this trend continues, it could indicate economic hardship and a weakening labor market, potentially leading to reduced consumer spending and confidence. This, in turn, could harm various financial markets, including Bitcoin and other cryptocurrencies.
Bank of Japan’s Rate Decision
Another major focus this week is the Bank of Japan’s (BoJ) interest rate decision and economic outlook report on January 24. A potential rate hike could signal a shift in global liquidity dynamics, putting pressure on carry trades.
This could lead to market turmoil and affect risk assets, including Bitcoin. Investors are closely monitoring this decision, as it could have a significant impact on global financial strategies and liquidity.
US Consumer Sentiment Report
On Friday, the US consumer sentiment report will provide an aggregate measure of how individuals feel about their finances and the economy.
Positive feelings from consumers can boost trust in the economy and may result in more investment in assets such as Bitcoin. Conversely, negative sentiment may result in decreased investor confidence and a shift towards safe-haven assets, impacting Bitcoin prices.
At the time of writing, Bitcoin BTC is trading at around $108,000, increasing more than 3% in the last 24 hours. With these key economic events on the horizon, the crypto market is poised for a potentially volatile week. Investors should stay informed and be prepared for possible market fluctuations as these developments unfold.
