3 Things That Could Move Crypto Markets in Big Week Ahead

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A huge week lies ahead on the US economic calendar with more inflation data and a Fed rate decision as markets continue to react to the war in the Middle East. 

Crypto markets are having a rare green morning during Asian trading, with most assets gaining over the past 24 hours. However, there could be more volatility in the week ahead with all eyes on the Federal Reserve meeting and what Chair Jerome Powell says about the impact of the war in Iran on inflation.

Meanwhile, President Trump plans to announce that multiple countries have agreed to form a coalition that will escort ships through the Strait of Hormuz, as fuel prices across the globe continue to increase.

Economic Events March 16 to 20

Markets will react to the US strikes on Kharg Island, an area vital to Iran’s oil industry, over the weekend, and stock futures have turned green while oil prices are back at $100 per barrel.

Wednesday is the big day for economic news, with February’s PPI Inflation report, which is unlikely to change the Fed’s hawkish stance. The US central bank meets on Wednesday, where there will be a decision on interest rates, but CME futures markets predict a 99% probability of no change.

“The Fed is going to be front and center, especially given the fact that we have seen the market push back… these rate cut expectations,” said Angelo Kourkafas, senior global investment strategist at Edward Jones.

Investors have been hoping for more rate cuts this year, which are generally bullish for stocks and crypto assets; however, those expectations have been dialed back due to fears that the surge in energy prices will push up inflation.

It will be Jerome Powell’s second-to-last meeting before his term as chair expires in May, so the next rate move may not come until Trump’s nominee Kevin Warsh takes over the helm later this year.

The rest of the week will see the Philly Fed Manufacturing Index and January New Home Sales data on Thursday.

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“We now have the Iran war, inflation data, and a Fed meeting all in the same week,” said the Kobeissi Letter.

Crypto Market Outlook

Around $70 billion has been added to the total market capitalization over the weekend, which has climbed to $2.54 trillion on Monday morning.

Bitcoin tapped $74,000 in early Asian trading but again met resistance there and started to pull back. Ether prices continued to grind slowly higher, going past $2,200 for the first time in months.

The altcoins were generally mixed with smaller gains for Solana, Chainlink, Zcash, and Bittensor.

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