Analysis: Middle East Ceasefire and Federal Reserve Decision Converge This Week – Crypto Market Eyes Geopolitical Risks and Interest Rate Trends

Odaily Odaily Planet Daily reports that the crypto market hopes to break free from months of geopolitical pressure this week. Following the announcement of a temporary peace agreement between the US and Iran, Bitcoin rose on Monday to near $66,000, up about 3.5% from Friday last week. Crypto-related stocks such as Strategy (MSTR) and Galaxy Digital (GLXY) also moved higher in pre-market trading.

However, the market remains cautious. Historical ceasefires have often broken down; an April truce failed to hold, and US military actions last month interrupted another round of ceasefire negotiations, weighing on crypto asset prices.

Attention this week will shift to the Federal Reserve's interest rate decision. On Wednesday, Federal Reserve Chairman Kevin Warsh will chair the first rate-setting meeting. The market expects rates to remain unchanged in the 3.50%-3.75% range.

Analysts point out that the release of the new "dot plot" (showing Fed officials' interest rate expectations) and the shortened trading hours due to the US Juneteenth holiday on Friday could reduce market liquidity. This week's economic data and Fed policy guidance will determine whether the crypto market can leverage the easing of geopolitical risks for a further rebound. (CoinDesk)