We share significant developments in the crypto markets every Sunday, which are expected to impact volatility. Cryptocurrencies are full of surprises, but experience shows that these events often trigger anticipated price movements.
After an ETF approval, crypto investors encountered sudden sell-offs on January 12, resulting in billions of dollars in sales. The upcoming week holds several key developments that could determine the direction of cryptocurrencies.
Important events include token unlockings, such as ID Token ($16.4 million) on January 22 and DYDX ($1.73 million) on January 23. Economic indicators, such as the U.S. Manufacturing and Services PMI on January 24 and the Turkish Central Bank’s interest rate decision on January 25, will also be closely watched.
The U.S. Core Durable Goods Orders, GDP data, and a decision on Grayscale’s Ethereum ETF will be revealed on January 25, while the U.S. Core PCE inflation data, crucial for the Federal Reserve’s monetary policy, will be announced on January 26. These data points could influence the Fed’s stance on interest rates and potentially dampen the market’s overly optimistic projections for rate cuts.
The market anticipates the Fed’s interest rate decision on January 31 to remain unchanged, but future statements could lower expectations for a March rate cut. This adjustment could negatively affect BTC sentiment post-halving. For the spot ETH ETF, significant movement isn’t expected until the SEC’s final decision in mid-year, although any surprise approval or rejection could have a substantial impact.