The crypto market started the week with a significant drop, losing $260 billion within 24 hours. The main causes are linked to new US tariffs and potential economic consequences.
US Treasury Secretary and Interest Rate Changes
One of the most significant events will be the release of the Federal Open Market Committee (FOMC) minutes from March discussing future interest rates. Last month, the Federal Reserve kept rates at 4.50%, and it is expected they will stay the same this month.
If there are indications of maintaining high rates, Bitcoin might drop further as investors move to safer assets. Conversely, if there are signs of possible rate cuts, this could boost cryptocurrency prices.
Jobless Claims and Their Market Impact
Another key metric to watch is the weekly Initial Jobless Claims report. A decrease in claims would indicate a stable economy, possibly reducing demand for Bitcoin as a hedge.
However, if jobless claims rise, this could raise concerns about a weakening economy, potentially prompting the Federal Reserve to change policies, thereby boosting interest in cryptocurrencies.
Consumer Price Index and Inflation
Another important event will be the release of the Consumer Price Index (CPI), which tracks inflation. If inflation remains high, the Fed might delay rate cuts, negatively impacting Bitcoin.
Conversely, a lower-than-expected CPI could increase the chances of rate cuts, boosting investor confidence in cryptocurrencies.
In the upcoming week, investors' attention will focus on key economic indicators that could substantially impact the cryptocurrency market. Depending on the data, the market reaction could range from declines to rises in Bitcoin and altcoin prices.
