Crucial Crypto and Bitcoin Milestones Await, With Powell’s Rate Cut Caution in the Spotlight

• Decisive events in the cryptocurrency market soon, possibly affecting Bitcoin and other digital currencies, watched closely.
• Jerome Powell, Fed chairman, shows caution on rate adjustments, influencing the dynamism of the crypto market.

In the coming days, critical moments are anticipated in the cryptocurrency sector, situations that could exert an influence on Bitcoin and other digital currencies. This comes in a context where Jerome Powell, the leader of the United States Federal Reserve (Fed), adopts a cautious strategy regarding the decrease in interest rates.

During an interview, Powell ratified that the Fed is handling with caution regarding rate cuts, even more so after recent economic indicators. He stressed that the U.S. economy is in a robust state and that the Federal Open Market Committee (FOMC) awaits stronger evidence of an inflationary pullback towards 2%, dismissing the assumption that Fed rate cuts would occur upon reaching that target.

Participants in the cryptoasset and Bitcoin market remain attentive to the Fed’s interest rate decisions, with the aim of redirecting their investments in the cryptocurrency sector.

Decisive Events for Crypto and Bitcoin Investors

Bitcoin-friendly president Nayib Bukele won re-election as president of El Salvador, suggesting a continued commitment to Bitcoin, including BTC accumulation and Bitcoin-based programs such as Freedom Visa and Citizen.

Separately, the People’s Bank of China implemented the reduction of reserve ratio requirements (RRR) for banks by 50 basis points. China’s CSI 1000 index experienced an 8% drop in a few hours, leading to the suspension of trading of 30% of the shares on the stock exchange. This comes amid stimulus measures, short-selling bans and other market stability policies by China.

In the US, several macroeconomic events are expected, including S&P Services PMI data on Monday, ISM Non-Manufacturing PMI data on Tuesday, 10-year Treasury Bond auction on Wednesday and Initial Jobless Claims on Thursday.

In addition, 20% of S&P 500 companies will report earnings reports this week, which could add to volatility as markets reach higher levels.

FOMC members’ speeches will be closely watched by investors. Presentations by Raphael Bostic, Loretta Mester, Adriana Kugler, Thomas Barkin and Michelle Bowman are scheduled. Austan Goolsbee, president of the Federal Reserve Bank of Chicago, and Bowman have already expressed skepticism about expectations for a rate cut in May or June.

Other Relevant Events

The U.S. SEC’s decision on the Invesco Galaxy spot Ether ETF is expected on February 6. Approval of this ETF is anticipated by market experts, including Standard Chartered and Bloomberg ETF analyst Eric Balchunas, for May.

Updates from the Polygon Mainnet (MATIC) on Tuesday and Horizen (ZEN) on Wednesday are also highlights this week, unveiling new benefits within blockchain technologies.

The Hong Kong Securities and Futures Commission (SFC) is likely to decide on Harvest Hong Kong’s spot Bitcoin ETF application on Feb. 9. The launch of the spot Bitcoin ETF is expected after Chinese New Year on February 10.