Bitcoin and altcoins markets had a “blockbuster” week. The US Federal Reserve’s interest rate decision and BlackRock’s Bitcoin spot ETF application were the defining events of the past week. The next week may also be pregnant with some decisive events. In terms of macro data, the week will be a little quieter, but Fed Chairman Jerome Powell’s statements before the US Senate and House of Representatives on Wednesday and Thursday, June 21 and 22, are of great importance. Here are the developments that should be considered in the coming period…
These developments are critical for altcoins.
Powell will face questions from Democrat and Republican politicians at 10:00 CEST on both days. The questions will focus on the Fed’s recent monetary and interest policy decisions. Powell’s speeches to the Senate and House of Representatives have traditionally been closely watched by the stock market. The often critical comments and questions by US policymakers about inflation, banking problems, future economic risks in the US, and other issues such as US housing problems and corporate lending can put Powell in a difficult position and elicit some interesting statements. During the sessions, investors can expect increased volatility in the Bitcoin and crypto markets, as well as stocks.
The most important macro data of this week will be the US service sector Purchasing Managers Index (PMI), which will be released on Friday, June 23 at 9:45 am. Finally, the final figures for May came in at 54.9, again below the experts’ expectations of 54.1.
However, despite slight declines, the services sector continues to outperform the US manufacturing sector. Only if the analysts’ estimate of 54.0 is significantly exceeded can a negative impact on financial markets be expected. Analysts will interpret this as a signal that the US economy is cooling. Meanwhile, reaching or exceeding the projection could increase the likelihood of further declines in inflation in the coming months.
FED and SEC moves matter
Besides the Fed and economic data, crypto-related events could also have a significant impact on prices next week. So, more positive news regarding US Securities and Exchange Commission (SEC) trading against crypto exchanges Binance and Coinbase could provide more upside potential. In addition, in the legal battle between Ripple Labs and the SEC, a decision by Judge Analisa Torres could come at any time. A Ripple victory could have huge implications for the entire crypto market, especially if the decision comments on the secondary market operations of crypto assets like XRP.
Finally, special attention will be paid to the leading cryptocurrency Bitcoin. Now that BlackRock has applied for a spot ETF, other financial giant Fidelity is said to do the same and apply for a BlackRock-style spot ETF. This bullish news could be crucial in pushing Bitcoin above the 200-week moving average (MA) once again. Analysts at Rekt Capital said, “#BTC has moved straight up to the 200-week MA. If the MA turns into a new resistance, BTC will reach two-stage failure confirmation. This will likely herald further downside movement,” he says.
