The crypto market is bracing for a potentially volatile week ahead, with several key events on the horizon that could influence prices and sentiment.
On Monday, investors will be closely watching the release of U.S. PCE inflation data, which has recently increased by 2.9% year-on-year. This higher-than-expected reading has reduced the chances of immediate interest rate cuts, putting pressure on risk assets such as cryptocurrencies.
The Federal Reserve's liquidity operations are also set to be a major focus point for traders this week. On Tuesday, the Fed will inject billions of dollars into financial markets, with some observers viewing this move as a temporary stimulus rather than a sign of full-scale quantitative easing.
Other notable events on the schedule include the release of initial jobless claims data on Wednesday and an update on the Federal Reserve's balance sheet on Thursday. The week will conclude with an economic announcement by President Donald Trump on Friday.