The global cryptocurrency market, with a $2.73 trillion cap, is heading into a packed week of major events led by the U.S. Senate’s CLARITY Act vote, the FOMC Federal rate decision, Japan’s CPI, and the BOJ rate decision.
These events could decide whether Bitcoin breaks higher or sees another pullback after its recent 2% weekly drop.
Here are the main events that could affect crypto, stocks, and global markets this week.
On Tuesday, the U.S. Senate is set to vote on a cloture motion on the CLARITY Act after returning from its summer recess. The bill needs 60 votes to move forward and begin formal debate.
Senator Cynthia Lummis released the final 635-page draft with major new ethics rules and more than 120 changes requested by Democrats.
Following the release, prediction market odds for the bill’s passage have jumped to 44%. However, some Republicans, banks, and industry groups still oppose parts of the bill.
On Wednesday, the Federal Reserve will announce its latest interest rate decision. Market expectations for a 25-basis-point hike have climbed to around 87%, according to CME FedWatch.
However, traders will also watch Fed Chair Kevin Warsh’s comments for clues about whether more hikes could follow.
More rate hikes could tighten liquidity and put pressure on Bitcoin and other risk assets.
On Thursday, the U.S. will release its weekly jobless claims data. Last week, initial jobless claims rose to 206,000 for the week ending September 10.
This week, claims are expected to rise to 209,000. Higher claims could point to a weaker U.S. economy, which may affect Bitcoin and the wider crypto market.
On Friday, Japan will release its August inflation data. Core inflation is expected to stay around 1.8% to 2.0%, close to the Bank of Japan’s 2% target. If inflation comes in higher than expected, the BOJ could signal more rate hikes.
The BOJ will also announce its latest rate decision on Friday. While, the markets is expecting the central bank to raise rates by 25 basis points to 1.25%.
Meanwhile, a rate hike could affect the yen carry trade and global markets.
As of now, Bitcoin is holding near $77,805, up 23.7% over the past month despite a 2% weekly drop. The price is now just below the $78,500 resistance level.
If the CLARITY Act moves forward and, by chance, the Fed keeps rates unchanged, Bitcoin could see a strong relief rally toward $80,000. But if these events disappoint markets, Bitcoin could fall toward $75,000.
Other major cryptocurrencies, including Ethereum, Solana, XRP, and Dogecoin, are also trading higher for now.
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