Macro Outlook for Next Week: The dawn of the Trump 2.0 era is imminent, Bitcoin may fly even higher

On January 18, in the last trading week before Trump's return to the White House, inflation data and dovish remarks from Federal Reserve Governor Waller led to a rebound in market interest rate cut expectations. The money market is currently pricing in about 40 basis points for the Fed's rate cut in 2025. As the Fed enters a quiet period, US economic data will be light next week, with markets focusing on the start of President Trump's term and its potential market impact. Here are key points that will be closely watched by markets this coming week: Monday - Annual meeting of Davos World Economic Forum until January 24; Wednesday at 23:00 - U.S. December Conference Board Leading Index monthly rate; Wednesday at 23:05 and Friday at 18:00 - Speeches by European Central Bank President Lagarde; Thursday at 21:30 - Number of initial jobless claims for the week ending January 18th in U.S.; Friday (to be determined) – Bank of Japan announces interest rate decision and economic outlook report, followed by a monetary policy press conference held by BOJ Governor Haruhiko Kuroda at12:30; Friday at22:45 – Preliminary values for U.S.'s SP Global Manufacturing and Services PMI for January. Given that Trump is expected to announce crypto-friendly policies, Bitcoin could potentially soar even higher. Insiders revealed that Trump plans to issue an executive order elevating cryptocurrency as a "policy priority" and giving industry insiders a voice within his government, signaling a major shift in US cryptocurrency policy. It is reported that this executive order will also include suspending any litigation involving cryptocurrencies and considering establishing national bitcoin reserves.