Crypto Market Awaits US-Iran Truce, CLARITY Act Vote, and FOMC Meeting

The crypto market is abuzz with several key events unfolding this week, including updates on the US-Iran truce and the Federal Reserve's interest rate decision.

According to Iranian Foreign Ministry spokesman Esmaeil Baghaei, indirect communication between the two nations continues via mediators, but Washington has been hindering diplomatic efforts. This development comes after a three-day ceasefire in U.S airstrikes, during which both sides have refrained from new attacks.

The CLARITY Act is also on traders' radar as Senate Majority Leader John Thune intends to bring it to the floor before August recess. However, with only 0.6% odds of passage by August 1 on Kalshi, its success seems uncertain, especially given that several Democrats would need to vote in favor.

The Federal Reserve's decision on monetary policy will be a crucial event for the crypto market, with a 62.1% probability of keeping the fed funds target range at 3.50%-3.75%. Markets will also look for any indications from Fed Chair Michelle Warsh about the central bank's future direction.