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Market Momentum: Bitcoin’s New Heights, Trump’s Return, and What’s Ahead for Stocks

Crypto surges, earnings reports roll in, and the market braces for policy shifts under a new administration

As we enter the week of January 20, 2025, several key developments are influencing market dynamics. Here’s a breakdown of the latest trends and events:

Cryptocurrency Surge: Bitcoin Hits New All-Time High

  • Bitcoin’s Record-Breaking Performance: On Sunday, January 19, Bitcoin (BTC) reached a new all-time high, trading at approximately $109,134. This surge is attributed to expectations of pro-crypto policies from President Donald Trump’s administration, which took office on January 20. AP News
  • Market Sentiment: The cryptocurrency market is experiencing heightened optimism, with the Fear & Greed Index indicating a score of 77 (Extreme Greed). This suggests strong bullish sentiment among investors. Changelly

Stock Market Overview: S&P 500 Technical Analysis

  • Current Performance: The SPDR S&P 500 ETF Trust (SPY) is trading at $597.58, reflecting a 1.01% increase from the previous close. The intraday high is $599.35, and the low is $593.01.
  • Technical Indicators: The S&P 500 has shown strong upward momentum, with key resistance levels around 6,090 and a potential bullish target of 6,290. Support levels are identified at 5,875 and 5,670. A break below these support levels could indicate a market correction. Investopedia

Upcoming Economic Data Releases

  • January 22: Philadelphia Fed Non-Manufacturing Survey at 8:30 AM ET.
  • January 23: Weekly Economic Index at 11:30 AM ET.
  • January 24: Michigan Consumer Survey (Final) at 10:00 AM ET.
  • January 25: Existing Home Sales at 10:00 AM ET.

These releases are expected to provide insights into economic health and could influence market movements.

Federal Reserve Bank of New York

Key Earnings Reports This Week

  • January 21: KeyCorp (KEY) is scheduled to announce its fourth-quarter 2024 earnings at 8:00 AM ET. Analysts anticipate earnings per share of $0.33, reflecting a 32% year-over-year increase. MarketBeat
  • January 22: Johnson & Johnson (JNJ) and Procter & Gamble (PG) are set to release their quarterly earnings reports. Investors will be keen to assess their financial health and outlooks.

Top News and Market Influencers

  • Presidential Inauguration: President Donald Trump will be inaugurated on January 20, 2025. His administration is expected to implement several executive orders focusing on immigration and economic policies, which could impact various sectors. Financial Times
  • Global Trade Relations: Anticipation of changes in trade policies under the new administration is influencing market sentiment. Investors are closely monitoring potential tariffs and trade agreements that could affect global markets. Reuters

Biggest Gainers from Last Week

  • TRUMP Coin: A new cryptocurrency named after President Trump saw significant gains over the weekend, reflecting investor enthusiasm for crypto-friendly policies. Financial Times
  • Technology Stocks: Companies like ServiceNow, Amazon, and Broadcom showed buy signals, contributing to the overall market rally. Investor’s Business Daily

Key Market Developments This Week

1. AP News: Stock Market Today – Asian Shares Gain and Bitcoin Hits a Record High Ahead of U.S. Inauguration

  • Summary: As global markets prepared for the U.S. presidential inauguration, Asian shares experienced gains, reflecting optimism in the markets. Bitcoin also made headlines by hitting a new all-time high, a surge that was attributed to the upcoming policies of the new administration, which is expected to be favorable to the crypto market. This positive sentiment is fueling a rally in both traditional and digital assets.
  • Link: AP News

2. Financial Times: Transcript – Trump Returns to the White House

  • Summary: This article features a comprehensive transcript of President Donald Trump’s return to the White House, marking the beginning of his second term. The inauguration has sparked conversations on the potential shift in U.S. economic policies, particularly in areas like trade, taxation, and regulation, which could influence markets and investment strategies in the coming months.
  • Link: Financial Times

3. Reuters: Take Five – We’ve Been Expecting You, Mr. Trump

  • Summary: Reuters provides an in-depth analysis of what investors expect from President Trump’s return to the White House. The article highlights the anticipation surrounding his policies, especially in terms of trade agreements, tariffs, and regulatory adjustments. It explores the global market’s reaction to the administration’s stance on economic issues, with a focus on how these changes could impact sectors like technology, healthcare, and international trade.
  • Link: Reuters

The information provided in this newsletter is for educational and informational purposes only. It does not constitute financial, investment, legal, or tax advice. The content is not personalized to the needs, objectives, or financial situation of any individual reader. All investments carry a high level of risk, including the potential for loss of principal. The market analysis, predictions, and opinions expressed are based on the information available at the time of writing and should not be considered as a guarantee of future performance.

Please conduct your own research and due diligence before making any investment decisions. It’s advisable to consult with a qualified professional regarding your specific circumstances before taking any action based on the information presented here. The author and publisher of this article disclaim any liability for any direct or incidental loss incurred by applying any of the information in this article, including but not limited to, any loss or damages resulting from errors, omissions, or inaccuracies in the information provided. Remember that past performance is not indicative of future results.


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