This will be important in crypto this week

After a strong start to the week, the Bitcoin price reached a new record high of 109,358 U.S. dollars, but dropped back to the previous week's closing price during the week. With a closing price of US$102,563, the Bitcoin about one percent higher than the previous week. The positive close of the week in U.S. financial markets supported the price. The majority of the top 100 altcoins, however, showed declines again as in previous weeks. In the new trading week, investors will primarily be watching various central bank decisions. This overview shows which economic data and corporate results will continue to be in the spotlight in the coming days.

Major Economic Events This Week
The final trading week of January is influenced mainly by central bank decisions. Before the Federal Reserve Bank (Fed) announces its first interest rate decision for 2025 on Wednesday evening, investors will first look at current data on U.S. consumer confidence on Tuesday. On Thursday, the first estimate of U.S. gross domestic product for the fourth trading quarter of 2024 is presented. Finally, on Friday, the Bureau of Economic Analysis publishes the latest core PCE inflation figures for the US.

Meanwhile, the peak of the U.S. stock market reporting period is approaching. After streaming giant Netflix already showed good numbers last week, Microsoft, Tesla and Meta Platforms, three of the Magnificent Seven stocks, will announce their latest quarterly results after trading on Wednesday night. Apple and credit card giant Visa will then follow on Thursday night. Weak corporate results can lead to profit-taking, especially in risky assets. However, strong quarterly reports could have a positive effect on the crypto sector.

Consumer confidence CB on Tuesday
Tuesday, Jan. 28, 2025: At 4 p.m. (EIA), the Conference Board (CB) releases monthly US consumer confidence figures for the past trading month. Household assessments of economic conditions in the US have been significantly below analyst forecasts recently. If the prediction is again not met, it could have a negative effect on the stock and crypto markets. If the predicted numbers are met or even exceeded, this could trigger a positive price reaction on risk assets, which would also positively affect the Bitcoin price.

Fed Mid-Week Interest Rate Decision
Wednesday, Jan. 29, 2025: At 8 p.m. (MEZ), the U.S. central bank Fed will announce its first interest rate decision of the 2025 trading year. Despite a recent drop in core CPI inflation data, experts do not expect further interest rate cuts. Investors will therefore listen carefully to Fed Chairman Powell's comments during the ensuing press conference. Any dovish statements by Powell, indicating continued monetary easing, could push up the prices of risk assets such as cryptocurrencies.

ECB interest rate decision on Thursday afternoon
Thursday, Jan. 30, 2025: In the early afternoon, the European Central Bank (ECB) will announce its first interest rate decision of this trading year at 2:15 p.m. (MEZ). Despite a recent slight rise in inflation in Europe, market observers expect a further rate cut. Investors should pay particular attention to the subsequent press conference at 2:45 p.m., in which ECB President Lagarde will explain the reasons for the decision and her economic outlook. Hawkish actions by the ECB could depress the euro exchange rate, which could be a headwind for risk assets such as Bitcoin.

US Gross Domestic Product Provides Insight into the State of the U.S. Economy
Almost simultaneously, the first estimates for U.S. gross domestic product for the last trading quarter of 2024 will be released on Friday, Jan. 31, 2025 at 2:30 p.m. (MEZ). If these are below prediction, this could affect the stock market. In contrast, a higher-than-expected estimate could be received positively as it would reduce the risks of a recession.

US Core Inflation Data at the End of the Week
On Friday, the latest US core inflation figures will be presented. If these are below prediction, this could lead to a further interest rate cut by the Fed in March. A market reaction to this would likely be positive. However, if the figures match or exceed expectations, this could reduce the likelihood of further interest rate cuts, which could lead to increased sales of risk assets.