Crypto News This Week: Top Catalysts for Bitcoin and Altcoins

Key Insights

• The Federal Reserve will be the top crypto news this week.
• The Iran and US war will likely escalate this week, pushing oil prices higher.
• Tokens like Arbitrum, LayerZero, and Kaito will unlock tokens this week.

Bitcoin and most altcoins held relatively steady last week despite the elevated risks in the financial market, including the ongoing Iran – US-Iran war and elevated energy prices. BTC held stable above the key support at $70,000, while top tokens like ETH and SOL remained above their lowest points this year. This article looks at some key crypto news to watch this week.

Federal Reserve Interest Rate Decision

A key crypto news story this week will be the Federal Reserve’s interest rate decision on Wednesday.

This decision comes after the United States published mixed macro data. A recent report showed that the labor market weakened in February, with the economy losing 92,000 jobs in February, the worst performance in months. The jobless rate rose slightly from 4.3% in January to 4.6% in February.

A separate report showed that inflation remained moderate in February before the war started. It remained at 2.4%, while the core consumer price index rose 2.5.%.

The Federal Reserve will likely not focus much on the latest inflation report. Instead, officials will focus on the impact of the upcoming war in the Middle East, which has pushed energy, fertilizer, shipping, and airfare prices to the highest levels in years. Crude oil has moved from $55 last month to $100 today.

Therefore, the Federal Reserve will leave interest rates unchanged and possibly hint at more caution as it observes the impact of the war in the US economy.

Bitcoin and other altcoins will likely do well if the Federal Reserve maintains a dovish tone on the upcoming meeting.

In addition to the Federal Reserve, other global central banks like the European Central Bank (ECB), Bank of England (BoE), and Bank of Japan (BoJ). Central banks from countries such as Brazil, China, and Canada will also announce their interest rate decisions.

Bitcoin and Ethereum ETF Inflows

Another top crypto news this week is the performance in the exchange-traded fund (ETF) market. Data shows that spot Bitcoin ETFs have gained assets in the last three consecutive weeks, bringing the cumulative inflows to over $56.1 billion. They have added $1.3 billion in assets this month.

Spot Ethereum ETFs have also added assets in the last three consecutive weeks. The total inflows rose by $160 million, bringing this month’s total to $184 million. These funds have added $11.79 billion in assets since their inception. Solana ETFs have received over $34 million in assets this month.

These inflows explain why Bitcoin and other altcoins have held relatively steady this month as it is a sign that investors are accumulating the assets.

Iran-US War Will Impact the Crypto Market

Meanwhile, the crypto market will react to the ongoing Iran war that has spread in the Middle East. The main news during the weekend was a Trump announcement that he bombed the Kharg Island, where Iran exports 90% of its oil. He added that the US avoided bombing the oil infrastructure in the island, a move meant to pressure Iran to reopen the Strait of Hormuz.

Iran has hinted that it will bomb other oil infrastructure in the region, a move that will boost crude oil prices. An escalation in the war will be bearish for Bitcoin and other altcoins because of the impact on interest rates.

Top Cryptocurrencies to Have Token Unlocks This Week

Meanwhile, more cryptocurrencies will have some token unlocks this week. DeFi Llama data shows that tokens worth over $145 million will be unlocked this week.

Arbitrum, the giant layer-2 network, will unlock $9.6 million in tokens on Monday. LayerZero will also unlock tokens valued at $49 million, while Kaito will unlock $6.3 million in cryptocurrencies.

Other tokens with large unlocks this year are River ($24.2 million), TON ($47.6 million), and ZetaChain ($2.24 million).

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