Crypto Markets on High Alert as Fed, Senate, and BOJ Prepare for Key Decisions

Crypto markets are bracing for a potentially volatile week ahead of three major catalysts. The US Federal Reserve, the US Senate, and the Bank of Japan will deliver key decisions that can drive significant market fluctuations.

The CLARITY Act is set to be voted on in the Senate, which could have far-reaching implications for cryptocurrency regulation. If passed, it would aim to establish clearer boundaries between the SEC and CFTC, defining how digital assets should be regulated.

Markets are already pricing in a 25-basis-point rate hike from the Federal Reserve, with odds standing at above 88%. The Bank of Japan is also expected to raise its policy rate, which could trigger a liquidity shock and potentially unwind the yen carry trade.