As the week unfolds, both the global crypto market and U.S. economic events are poised to influence market behavior significantly. The crypto market, which had recently dropped to $2.17 trillion, has bounced back to $2.38 trillion, driven by a technical recovery from oversold conditions. Although there is this temporary recovery, the market is still weak, and the future is still uncertain, and investors are on edge.
Key Crypto Market Events to Watch
The upcoming week features pivotal events that could impact the crypto market.
On Monday, the Federal Reserve is set to receive attention as President Donald Trump officially nominates Kevin Warsh to succeed Jerome Powell as Chairman of the Federal Reserve. If he be confirmed, Warsh will bring his wealth and prior experience at the Fed to the position.
This shift in the leadership might affect any future decision on the interest rates and inflation targets.
But the market is not sure yet, with vital figures such as inflation and the employment figures of November being postponed after the government shutdown. This uncertainty generates a volatile market, where investors are unsure of what to expect of the U.S. economic policy.
Another big thing will be on Tuesday when the Federal Reserve injected $8.3 billion into the market. This liquidity action is meant to stabilize the financial markets, which have been on their knees.
This money injection is very important because the market is still rebounding from a sharp sell-off that occurred late in the week.
The Federal Budget Balance will be issued on Wednesday, which will provide a report of the health of the government. The report will include critical information on the expenditure and revenue trend of the government, which is particularly critical given the current economic difficulties.
Another important point to note will be the release of the Balance Sheet data by the Federal Reserve on Thursday. This report will provide an understanding of the financial position of the Fed and future strategies, including the way it will address inflation and weak economic growth.
Crypto Market Sentiment and Trends
The crypto industry has experienced a 1.96% growth within the last 24 hours despite the wider market uncertainties. Bitcoin price has recovered to the $71,000 level, and other altcoins also demonstrate the recovery.
This optimistic move has occurred after a phase of excessive fear as evidenced by the Fear and Greed Index that had been at its lowest point earlier that week.
Risks of a Government Shutdown
Another risk that might put a burden on the crypto market is the possibility of a government shutdown. Polymarket data indicates that there is a 66% probability of a partial shutdown by next week.
A shutdown would postpone significant economic data and further complicate fiscal policy, making it more difficult to sail the Federal Reserve through the present economic situation.
Overall, this week will be a decisive week not only in the crypto market but also in the overall economic situation. As there are a few significant reports and events ahead, investors will have to remain vigilant and deal with the risks of an unstable economic environment.
Source: https://coingape.com/trending/top-crypto-market-events-to-watch-this-week/
