This morning Asia time, Bitcoin jumped slightly to the $91K mark, and ETH moved up to $3.100, showing a slight uptick over the weekend as traders await the big Fed meeting tomorrow.
CoinMarketCap’s Crypto Fear and Greed Index currently stands at 24, signaling a state of uneasiness in the market.
What Traders Should Watch Out for this Week
Traders are expecting the Federal Open Market Committee to cut the federal funds rate a third time by 0.25% this week, with markets putting the odds at 80-90%.
While this could explain the slight uptick in market prices this morning, traders are waiting for the Fed’s outlook for Q1, and whether or not it will continue to stimulate the economy through additional rate cuts or other measures.
Hesitancy on the Fed’s part could cause cryptocurrencies and other risk assets to decline even further.
President Trump announced that he will publicly reveal who the next Fed Chairman is in January; the current chairman’s term ends in May. It is widely expected that he will pick a candidate with strong intent to cut rates and stimulate the economy further.
In other news, the Supreme Court could vote to uphold or strike down President Trump’s sweeping tariffs soon; striking down the tariffs would likely uplift markets.
Other indicators to watch out for this week:
- On December 9, the NFIB optimism index will be released, acting as an economic bellwether to determine businesses’ optimism about overall business health and labor quality.
- Initial jobless claims will also be released on December 11, as well as the US trade deficit.
- Last week’s Ethereum Fusaka Upgrade could also boost adoption, and drive the price of Ethereum up to $3,500 by mid-week.
