As inflation worsens and trade tensions loom, investors brace for a volatile period in the crypto market. All eyes are on the Federal Reserve, leading company earnings, and the influx into Bitcoin and Ethereum ETFs.
Last week, Bitcoin remained relatively stable, oscillating between $116,000 and $119,000, while altcoins displayed a significant decline. The crypto market appears to be entering a waiting phase, anticipating major macroeconomic and corporate catalysts.
The US Federal Reserve will unveil its decision on interest rates this Wednesday. Economists anticipate that the Fed will maintain rates between 4.25% and 4.50%, despite pressure from President Trump. This decision, along with upcoming economic data on consumer confidence, GDP, and personal consumption index, will have a direct impact on Bitcoin and altcoins.
Additionally, Friday’s non-farm employment report will be crucial in guiding the Fed’s future monetary policy. A higher-than-expected rate hike could weigh on risk assets like cryptocurrencies.
Another key factor will be the second-quarter earnings season. Investors will closely monitor releases from Silicon Valley giants such as Tesla, Apple, Microsoft, Alphabet, Amazon, Nvidia and Meta Platforms. Historically, these companies’ earnings have strongly correlated with Bitcoin movements.
Furthermore, the growing demand for Bitcoin and Ethereum ETFs in the United States is an important driver of the crypto market. Data shows that Bitcoin ETFs have continued to attract significant inflows this year, strengthening cryptocurrencies’ position in traditional financial markets.
Finally, the outcome of trade negotiations between the United States and other key countries, such as the EU, South Korea, Mexico, Brazil, and Canada, will also be closely monitored. An escalation in trade tensions could negatively impact Bitcoin, altcoins, and other assets.
In summary, the coming week will be crucial for the short-term direction of the crypto market. The Fed’s decisions, leading tech company results, and Bitcoin and Ethereum ETF flows will all be determining factors. Investors would be wise to stay informed about these key events to better understand upcoming market trends.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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