Key Insights
- The crypto market will react to some major catalysts this week.
- The Senate Banking Committee will work on a consensus on the CLARITY Act.
- There will be token unlocks on coins like Avalanche, TRUMP, and Merlin Chain.
The crypto market remained on edge last week as investors reacted to the latest developments on the CLARITY Act and key macro data like the United States consumer and producer inflation report. This article looks at some key crypto news to watch this week.
CLARITY Act Progress Will be the Top Crypto Market Catalyst this Week
The biggest crypto news last week was on the Crypto Market Structure Bill, which stalled in the Senate on Thursday following the decision by Coinbase to withdraw its support.
Coinbase cited several factors, including its policies on tokenized and stablecoin rewards. The latter was the most important aspect, as Coinbase has been betting on the stablecoin industry in the past few years.
In a statement, Coinbase’s Brian Armstrong noted that he was still engaging with the White House and the Senate on how to address the outstanding issues. The Senate Banking Committee is also working on the same.
Therefore, signs of progress this week will be bullish for Bitcoin and other crypto prices this week.
Token Unlocks Will Impact Crypto Prices
The other key crypto market catalyst this week will be token unlocks by some of the biggest tokens in the industry. TRUMP, the meme coin that Donald Trump started, will unlock 50 million tokens worth $266 million. It has so far unlocked 46.3% of its total tokens.
Merlin Chain (MERL) will unlock 36.14 million tokens worth $7.6 milllion, while LayerZero will unlock tokens worth $41 million. These tokens account for 11% of LayerZero’s float.
TON Blockchain will unlock tokens worth $62 million, while Avalanche will release AVAX tokens worth $22 million. The other top tokens with large unlocks this week will be Axelar, Jupiter, Optimism, and Melania.
Token unlocks chart | Source: DeFi Llama
SCOTUS Decision on Donald Trump’s Tariffs
The crypto market will also react to the potential developments on US tariffs. The Supreme Court is expected to deliver its ruling on a lawsuit that challenged these tariffs. This decision will likely come out on Tuesday this week.
Data from Polymarket shows that most traders expect the court to rule against these tariffs. Such a move would be bullish for crypto prices as it would help to lower inflation and raise the odds of the Federal Reserve cutting interest rates.
The ruling will come before Trump implements new tariffs on goods from eight European countries that have sent military officials to Greenland. In a statement, Trump said that countries, including the UK, Germany, and Sweden, will pay a 10% tariff on goods shipped to the US starting on February 1. The rate will then increase in June this year.
Still, Trump will have some options for implementing tariffs if the SCOTUS rules against his levies.
Federal Reserve Liquidity Boost
Meanwhile, the crypto market will react to the upcoming liquidity boost by the Federal Reserve. The bank’s calendar shows it will inject $55.3 billion over the next three weeks, with the first injection starting on Tuesday.
These purchases are part of the bank’s process of rolling over maturing treasury bills. They will come a week before the bank delivers its first interest rate decision of the year. Economists expect the bank to leave interest rates unchanged in that meeting.
World Economic Forum Meeting in Davos
Crypto prices will likely react to the upcoming meeting of key leaders and policymakers at the World Economic Forum in Davos, Switzerland. Top leaders, including Donald Trump will attend the gatherings.
The crypto community is also typically involved in the meetings, with officials from companies such as Hedera, Chainlink, and Ripple in attendance. Some of the top crypto themes that will come out in this meeting will be on regulations, privacy, and tokenization.
The other potential catalysts for the crypto market wil be corporate earnings from some of the biggest companies in the US and macro data.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
