Key Insights:
- President Trump comments on Fed Chair Powell suggested that Powell could be leaving soon as he helps in another ceasefire and kickstarts trade negotiations with the two warring countries.
- Per Kobeissi Letter, Kalshi saw a 95% chance of no change in interest rates this week.
- Main events happening across major chains with FLUID expected to change approach in foreign exchange markets.
The crypto markets entered the third consecutive week of high activity and the events seem not to be slowing down. After the “Crypto Week” that saw multiple bills regarding crypto regulations being passed, this week, the same could unfold.
From Trump’s comment Fed’s Chair fate, tariffs battles, crypto watchlist and many other, the week could be also one of a kind. The crypto community need to watch the events as they could highly impact the movement of tokens this week and going forward. With that in mind, what do these updates entail in details?
President Trump Says Powell’s Time
According to Kobeissi Letter on X (formerly Twitter), President Donald Trump said words that could be interpreted as firing to the Fed Chair Jerome Powell. In his comment, President Trump said,
This comes barely less than a week after President Trump said that Powell had signaled that he was likely to reduce the interest rates. However, many voices in the financial markets were still stressing that Powell’s decisions were professional as compared to Trump’s agitation.
The ripple effect of the cutting interest rate would be more borrowing that would in turn be invested in risk-on assets like bonds, treasury bills, Bitcoin and other cryptos. This would mean more upside potential from the capital pumped into the ecosystem.
On the global tensions front, Trump announced that he held a meeting with Acting Prime Minister of Thailand and Prime Minister of Cambodia on their war. The President said that they had reached ceasefire and peace, saving lives. He further noted that he instructed his Trade Team to restart negotiations on tariffs.
These developments continue to shape the outlook of global finance which has been disturbed by Trump’s tariff wars. Once the dust settles, crypto and the overall markets could go parabolic.
Major Economic Events This Week
Additionally, the Fed is expected to communicate on Tuesday. As per Kobeissi Letter on X, the chances of rates remaining unchanged had maintained at 95% as cut of 25 basis points (bps) stood at only 5%.
Moreover, the chances of interest rates cut by more than 25 bps was about 1% as per Kalshi analytics. Still the eyes were set on the remaining period until January 2026 with about 2 rates cuts expeted.
Looking at other economic events, Tuesday would see release of JOLTS Job Openings. Wednesday is expected to have high volatile news that range from Federal Funds Rate, FOMC Statement and press conference, advance GDP q/q and ADP non-farm employment change.
The most volatile is expected to be Friday’s NFP which is scheduled to be released at 8:30 AM Eastern Time. The events could shape U.S. Dollar’s strength which is a major determinant of currency movements as most are paired to it.
What’s New in Crypto This Week?
Also worth noting is the crypto watchlist for this week where Sui Network (SUI) will unlock $184M worth of tokens into the market. This could result in increase in selling pressure if the foundation has not yet priced in these tokens.
Others include a DeFi protocol, PENDLE, which will launch HyperEVM and it is anticipated to produce a pump. Sonic (S) will also include 100K+ wallets for claiming S1 airdrop tokens.
Human Finance (HUMA) is also set to announce a major partnership with Ripple (XRP). Fluid DEX will also go live which will induce more capital in the currency markets.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
