Analysis: Middle East Ceasefire Overlaps with Fed Decision, Crypto Market This Week Focuses on Geopolitical Risks and Interest Rate Trends

Odaily Planet Daily News The crypto market hopes to shake off months of geopolitical pressure this week. Following a temporary peace agreement between the US and Iran, Bitcoin rose to near $66,000 on Monday, up about 3.5% from Friday; crypto-related stocks such as Strategy (MSTR) and Galaxy Digital (GLXY) also rose in pre-market trading.

However, the market remains cautious. Historical ceasefire agreements have often broken down; a truce in April failed to hold, and last month's US military action led to another ceasefire collapse, which once dragged down crypto asset prices.

This week, the focus will shift to the Federal Reserve's interest rate decision. On Wednesday, Federal Reserve Chairman Kevin Warsh will preside over the first rate meeting, with the market expecting rates to remain unchanged in the 3.50%-3.75% range.

Analysts pointed out that the new "dot plot" (showing Fed officials' 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 further rebound. (CoinDesk)