MARKETS week ahead: January 20 – 26
Last week in the news
The US inflation is not as scary as investors previously thought. In this sense, they adjusted previous expectations and returned positive sentiment to financial markets. The US equity markets recovered from losses carried two weeks ago. The S&P 500 ended the week at the level of 5.996. The US Dollar continued to gain in strength, but due to general uncertainty, the price of gold also surged back to the $2,7K levels. The US Treasury yields reacted strongly on inflation figures, bringing back the 10Y US benchmark to the level of 4,62%. In the dawn of the US new Administration inauguration, the crypto market also reacted positively, bringing BTC back above the level of 100K.
The US inflation figures were posted during the previous week, which was the major macro event. The inflation rate in December was standing at 0,4% for the month, bringing the inflation figure to 2,9% on a yearly basis. Both figures were in line with market forecasts. At the same time, core inflation was lower from market estimate, reaching 0,2% for the month and 3,2% on a yearly basis. This was information that changed market sentiment from negative to positive. Namely, strong jobs figures initiated a fear among investors that inflation might be higher than previously estimated, in which sense, the Fed will halt further cuts of interest rates. The current situation signals that the market was wrong with previous estimates, and that inflation in the US is on a clear down trend, in which sense, the Fed might continue with planned two rate cuts during the course of this year. The US 10Y Treasury yields also had a strong reaction to inflation data, bringing yields from the 4,8% down to 4,62%. level.
During the previous week markets were discussing a new meme coin issued by a new US President-elected, whose inauguration is scheduled for January 20th. The meme coin was issued on a Solana blockchain, where this coin surged by 12% on Saturday and 23% on Friday. News is reporting that this coin currently has a market cap of nearly $5 billion and is the largest coin on the Solana chain.
The Bank of Japan is again in the spotlight of investors' attention. Namely, there are an increasing number of news reports noting a potential rate hike by the Bank of Japan in order to support the decreasing value of its currency. Reuters mentioned sources from BoJ which noted higher probability that the BoJ will increase its reference rates on a meeting as of the end of January. Market participants are currently pricing 80% chances for a rate hike at the forthcoming BoJ meeting. Due to the significant amount in carry trades, there is a higher probability that the markets in the US might react in a negative manner to this BoJ action.
There was a lot of dust in the media regarding the TikTok ban in the US during previous weeks. However, Reuters posted the latest news that the new President-elect Trump will allow TikTok to operate in the US only if US investors hold 50% stake in the company.
Crypto market cap
As inflation in the US is clearly under control and on its way down, and as inauguration of a new President-elect is coming due, the crypto market turned to the positive hype for one more time. The majority of crypto coins were traded in a positive sentiment during the previous week, increasing total crypto market capitalization by 11% on a weekly level, adding a new 340B to it. Daily trading volumes were also significantly increased to the level of 382B on a daily basis, from 130B traded a week before. Total crypto market cap increase from the end of the previous year currently stands at 11%, where 340B has been added.
Almost all crypto coins ended the week in a positive territory. The highest increase in market cap came from Bitcoin, which increased its value by more than 11% on a weekly basis, adding a new 211B to it. A new 19B came from ETH, which was a weekly increase of around 5% for this coin. XRP was also in the spotlight of the market, which managed to increase its market value by 27% w/w, adding 38B to its market cap. This time Solana should be specially mentioned. Namely, the coin surged by more than 44% after a new meme coin TRUMP was issued on this network, which represents the highest coin on this blockchain. Eventually, the market has a new favorite coin on the market, called TRUMP, issued by the current US President-elect. In only a few days, this coin managed to collect $ 13B in the market cap, and currently takes 16th place on the list of most valuable coins, based on data from Coinmarketcap. The TRUMP coin surged by an incredible 918% for the last seven days.
In line with the significant surge in the market cap, Solana also increased the number of its coins in circulation by 0,5% on a weekly basis. Stellar and Algorand had an increase in circulating coins by 0,2%, each. The number of Tether stablecoins increased by 0,7% during the previous week.
Crypto futures market
The crypto hype is for one more time on the crypto market, but this time also on the crypto futures market. Some interesting developments occurred with BTC futures during the previous week. Namely, all maturities were traded higher by more than 10% on a weekly basis, where futures maturing in December 2026 reached the price of $124.045. This represents the highest ever quoted price for BTC, indicating that the market is extremely positively oriented toward this coin. Futures maturing in December this year ended the week at the level of $114.145.
ETH futures were traded higher around 7,5% for all maturities. Futures maturing as of the end of this year ended the week at the level of $3.778. Those futures maturing in December 2026 managed to cross the $ 4K level, ending the week at $4.057.
The US inflation is not as scary as investors previously thought. In this sense, they adjusted previous expectations and returned positive sentiment to financial markets. The US equity markets recovered from losses carried two weeks ago. The S&P 500 ended the week at the level of 5.996. The US Dollar continued to gain in strength, but due to general uncertainty, the price of gold also surged back to the $2,7K levels. The US Treasury yields reacted strongly on inflation figures, bringing back the 10Y US benchmark to the level of 4,62%. In the dawn of the US new Administration inauguration, the crypto market also reacted positively, bringing BTC back above the level of 100K.
The US inflation figures were posted during the previous week, which was the major macro event. The inflation rate in December was standing at 0,4% for the month, bringing the inflation figure to 2,9% on a yearly basis. Both figures were in line with market forecasts. At the same time, core inflation was lower from market estimate, reaching 0,2% for the month and 3,2% on a yearly basis. This was information that changed market sentiment from negative to positive. Namely, strong jobs figures initiated a fear among investors that inflation might be higher than previously estimated, in which sense, the Fed will halt further cuts of interest rates. The current situation signals that the market was wrong with previous estimates, and that inflation in the US is on a clear down trend, in which sense, the Fed might continue with planned two rate cuts during the course of this year. The US 10Y Treasury yields also had a strong reaction to inflation data, bringing yields from the 4,8% down to 4,62%. level.
During the previous week markets were discussing a new meme coin issued by a new US President-elected, whose inauguration is scheduled for January 20th. The meme coin was issued on a Solana blockchain, where this coin surged by 12% on Saturday and 23% on Friday. News is reporting that this coin currently has a market cap of nearly $5 billion and is the largest coin on the Solana chain.
The Bank of Japan is again in the spotlight of investors' attention. Namely, there are an increasing number of news reports noting a potential rate hike by the Bank of Japan in order to support the decreasing value of its currency. Reuters mentioned sources from BoJ which noted higher probability that the BoJ will increase its reference rates on a meeting as of the end of January. Market participants are currently pricing 80% chances for a rate hike at the forthcoming BoJ meeting. Due to the significant amount in carry trades, there is a higher probability that the markets in the US might react in a negative manner to this BoJ action.
There was a lot of dust in the media regarding the TikTok ban in the US during previous weeks. However, Reuters posted the latest news that the new President-elect Trump will allow TikTok to operate in the US only if US investors hold 50% stake in the company.
Crypto market cap
As inflation in the US is clearly under control and on its way down, and as inauguration of a new President-elect is coming due, the crypto market turned to the positive hype for one more time. The majority of crypto coins were traded in a positive sentiment during the previous week, increasing total crypto market capitalization by 11% on a weekly level, adding a new 340B to it. Daily trading volumes were also significantly increased to the level of 382B on a daily basis, from 130B traded a week before. Total crypto market cap increase from the end of the previous year currently stands at 11%, where 340B has been added.
Almost all crypto coins ended the week in a positive territory. The highest increase in market cap came from Bitcoin, which increased its value by more than 11% on a weekly basis, adding a new 211B to it. A new 19B came from ETH, which was a weekly increase of around 5% for this coin. XRP was also in the spotlight of the market, which managed to increase its market value by 27% w/w, adding 38B to its market cap. This time Solana should be specially mentioned. Namely, the coin surged by more than 44% after a new meme coin TRUMP was issued on this network, which represents the highest coin on this blockchain. Eventually, the market has a new favorite coin on the market, called TRUMP, issued by the current US President-elect. In only a few days, this coin managed to collect $ 13B in the market cap, and currently takes 16th place on the list of most valuable coins, based on data from Coinmarketcap. The TRUMP coin surged by an incredible 918% for the last seven days.
In line with the significant surge in the market cap, Solana also increased the number of its coins in circulation by 0,5% on a weekly basis. Stellar and Algorand had an increase in circulating coins by 0,2%, each. The number of Tether stablecoins increased by 0,7% during the previous week.
Crypto futures market
The crypto hype is for one more time on the crypto market, but this time also on the crypto futures market. Some interesting developments occurred with BTC futures during the previous week. Namely, all maturities were traded higher by more than 10% on a weekly basis, where futures maturing in December 2026 reached the price of $124.045. This represents the highest ever quoted price for BTC, indicating that the market is extremely positively oriented toward this coin. Futures maturing in December this year ended the week at the level of $114.145.
ETH futures were traded higher around 7,5% for all maturities. Futures maturing as of the end of this year ended the week at the level of $3.778. Those futures maturing in December 2026 managed to cross the $ 4K level, ending the week at $4.057.
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