- Jerome Powell, in a 60 Minutes interview, further confirmed the central bank’s cautious approach to interest rate cuts, especially in light of recent economic data.
- The victory of Nayib Bukele in the presidential election in El Salvador signifies additional commitment, particularly to BTC accumulation and the Bitcoin-based Freedom Visa and Citizen program.
- The People’s Bank of China’s reduction of reserve requirement ratios (RRR) for banks by 50 basis points came into effect today.
Recent developments that could impact the Bitcoin and cryptocurrency market: The statements of the Fed Chairman are influencing the market!
Recent Developments Affecting the Bitcoin Market
Jerome Powell, the Chairman of the U.S. Federal Reserve (Fed), confirmed in a 60 Minutes interview that the central bank is even more cautious about interest rate cuts, especially in light of recent economic data. He stated that the U.S. economy is strong, and the Federal Open Market Committee (FOMC) wants to see more evidence of inflation falling to 2%.
Powell rejected the theory that Fed interest rate cuts would occur only after reaching the 2% target. He mentioned that crypto and Bitcoin traders are looking for clues from Fed interest rate cuts, and therefore, it could inject money back into the crypto market.
This week will be critical for crypto investors, with several significant events related to crypto and macro developments planned. The victory of Bitcoin-friendly candidate Nayib Bukele in the El Salvador presidential election signifies additional commitment, especially to BTC accumulation and the Bitcoin-based Freedom Visa and Citizen program.
Meanwhile, the People’s Bank of China’s reduction of reserve requirement ratios (RRR) for banks by 50 basis points came into effect today. China’s CSI 1000 index dropped by 8% within a few hours, leading to a trading halt for 30% of the shares on the stock exchange. This occurred within the framework of China’s measures for stimulus, short selling bans, and other market stability policies.
From the U.S., there are several macro events scheduled, such as S&P Services PMI data on Monday, ISM Non-Manufacturing PMI data on Tuesday, the announcement of 10-Year Treasury Bonds on Wednesday, and Initial Jobless Claims on Thursday. Additionally, this week, while 20% of S&P 500 companies report their earnings, volatility may increase as markets reach high levels.
The most important event for traders seeking clues will be the speeches of Fed officials. FOMC members Raphael Bostic, Loretta Mester, Adriana Kugler, Thomas Barkin, and Michelle Bowman have planned speeches for this week. Federal Reserve Bank of Chicago President Austan Goolsbee and Bowman are currently against expectations of interest rate cuts in May or June.
Other Events
The U.S. Securities and Exchange Commission’s (SEC) decision on Invesco Galaxy spot Ether ETF will be announced on February 6. Market experts, including Standard Chartered and Bloomberg ETF analyst Eric Balchunas, expect approval of the Ether ETF in May. Polygon (MATIC) Ethrog upgrade on Tuesday and Horizen (ZEN) mainnet upgrade on Wednesday are among other important events for this week.
The Securities and Futures Commission (SFC) of Hong Kong may decide on Harvest Hong Kong’s spot Bitcoin ETF application on February 9. The launch of the Spot Bitcoin ETF is expected on February 10, after the Chinese New Year.
