Federal Reserve Decision and Iran-US War to Shape Cryptocurrency Markets

The upcoming Federal Reserve interest rate decision and the ongoing Iran-US war will be key drivers of cryptocurrency markets this week.

According to recent economic reports, the United States experienced a weaker labor market in February, with a loss of 92,000 jobs. However, inflation remained moderate at 2.4%, and the core consumer price index rose 2.5%.

The Federal Reserve is likely to focus on the impact of the war in the Middle East, which has pushed energy prices to their highest levels in years. As a result, it is expected that interest rates will remain unchanged, with officials possibly hinting at more caution in response to the escalating conflict.

Other central banks, such as the European Central Bank (ECB), Bank of England (BoE), and Bank of Japan (BoJ), are also set to announce their interest rate decisions this week. The performance of Bitcoin and Ethereum exchange-traded funds (ETFs) will also be closely watched, with spot ETF inflows reaching over $56.1 billion.