Central Banks to Set Stage for Crypto Volatility This Week

The crypto market is bracing for a volatile week ahead of key macroeconomic decisions from major central banks. On September 16, the Federal Reserve will make its rate decision, with markets expecting a benchmark rate hike to 4.00% from 3.75%. The decision will be followed by Fed Chair Kevin Warsh's press conference and an update on the Summary of Economic Projections, including the closely watched 'Dot Plot.'

Earlier in the day, investors will receive US August retail sales data, which is forecast to rise 0.8% month over month after falling 0.6% previously. Retail sales excluding autos are expected to increase 0.5%, while import prices are projected to climb 0.2%. The Bank of England's rate decision on September 17 is also set to remain unchanged at 3.75%.

The following day, the Bank of Japan will make its policy rate decision, with markets expecting a hike to 1.25% from 1.00%. This could create significant volatility across global markets and crypto. US industrial production data will be released later in the week.