Central Banks to Decide Crypto's Fate as Interest Rates Loom Large

The upcoming week is expected to be crucial for the cryptocurrency market, as major central banks are set to make key decisions on interest rates. The Federal Reserve, Bank of England, and Bank of Japan will hold meetings that could impact crypto prices.

Gregory Daco, chief economist at EY-Parthenon, believes September may be the first meaningful test of the Fed's stance on inflation. Meanwhile, markets are looking for signs that higher energy prices have brought further tightening closer.

The U.S. economy is expected to release second-quarter GDP and June Personal Consumption Expenditure (PCE) data on Thursday, which could influence interest rate expectations. A strong reading would reinforce higher-for-longer expectations and put pressure on crypto prices through higher yields and a stronger dollar.

Major exchanges such as Coinbase will also be releasing earnings reports, providing insights into retail activity and digital-asset treasury companies.