Central Banks to Announce Interest Rate Decisions as Bitcoin Fights Inflationary Pressures

The upcoming week is set to be pivotal for global markets, including cryptocurrencies like bitcoin. Seven major central banks, including the U.S. Federal Reserve, are scheduled to announce their interest rate decisions.

Most of these central banks are expected to keep interest rates steady, but hawkish comments from policymakers could trigger downside volatility across risk assets. This is due to rising inflation expectations, which have pushed bond yields higher and tightened financial conditions.

However, geopolitical tensions currently dominate the market backdrop, according to André Dragosch, European head of research at Bitwise. Historically, such shocks tend to fade quickly, and bitcoin has often delivered above-average returns after periods of elevated geopolitical risk.