"There is also a lot of data this week, will the crypto market react significantly?"
The cryptocurrency market is currently focusing on various indicators from the Federal Reserve (Fed) especially key data such as the Personal Consumption Expenditure (PCE) Index and the Gross Domestic Product (GDP) revision.
Not only that, upcoming speeches from various Fed officials such as Atlanta Fed President Raphael Bostic and Fed Governor Chris Waller are also scheduled this week, so crypto market participants are anxiously awaiting those views for an indication of the Fed's next plans.
Despite expectations that the Fed will lower interest rates, the latest data suggest a shift in the Fed's approach prompting a revision in analysts' forecasts.
Citing the Fed's signal and strong US economic data, Goldman Sachs Chief Economist Jan Hatzius revised down his forecast in which he expects four interest rate cuts this year instead of five.
Added to the fact that there is a 96% probability of unchanged interest rates, crypto market participants are now calmly awaiting the Fed's decision which has affected the sentiment of the broader financial market not to mention the digital asset sector.
There is no denying that economic uncertainty is on the rise, but the crypto market has shown resilience following increased spot BTC ETF inflows and a possible BTC halving event in April 2024 including the expected Ethereum (ETH) ETF.
However, it should be noted that a gloomy outlook can cast a shadow on market sentiment where it has the potential to influence investment decisions across both traditional and digital asset markets.
As of this writing, the price of BTC is up 0.17% at $51,545 in the last 24 hours with a market cap of $1 trillion but is still down 1% over the past week.
