As of the article’s writing, Bitcoin 
$104,193 is valued at $105,000, while altcoins are seeing minor gains. Ethereum 
$3,308‘s price has rebounded, reaching the $3,400 mark. Market participants are eager to observe the outcomes of several measures taken by Trump and his team.
Macroeconomics and Interest Rates
The upcoming Federal Reserve interest rate decision next week is highly significant on the macroeconomic front. This morning, Japan’s central bank lowered interest rates to levels not seen since the 2008 global financial crisis. The rate increase to 50 basis points coincided with Donald Trump’s inauguration, marking a pivotal moment in the global financial landscape whose effects on other central banks will soon be revealed.
In his recent statements, Trump indicated he would consider a trade agreement with China before deciding on tariff policies. This suggests a potential compromise, implying that markets may face reduced volatility. Recently, the Chinese president mentioned having a very positive phone conversation with Trump.
Interest Rate Prospects and Cryptocurrency Outlook
On January 29, the Fed will announce its first interest rate decision of the year. Currently, market expectations lean heavily towards keeping rates unchanged. However, just hours ago, Trump expressed a desire for rates to drop quickly. Although Trump has avenues for influence, Powell has reiterated that the Fed’s independence ensures decisions will be made autonomously.
What measures can Trump take to lower interest rates? In a recent press conference, he stated that seeing a drop in oil prices could help reduce inflation, thereby facilitating rate cuts. Recent inflation data has shown that energy prices played a significant role.
Trump reiterated his desire for substantial rate reductions, asserting that steps taken to mitigate price pressures would support this goal. After the January 29 rate decision, comments from the Fed Chair will be crucial. If the recent slight improvement in inflation encourages the Fed toward cuts, we should take note. For now, markets anticipate the first rate cut in June.
Expectations for declining interest rates bode well for cryptocurrencies. However, a negative opening in U.S. markets has contributed to some weakness for Bitcoin.
