Crypto news

The new week on global markets began with a downward movement in oil prices. Fortunately for traders, geopolitical tensions in the Middle East are gradually easing, putting pressure on Brent and WTI quotes. At the same time, stock index futures are showing confident growth, and US Treasury bond yields have declined after a recent spike. The US dollar index has also moved lower. It is clear that markets are reassessing short-term inflation expectations ahead of key decisions by global central banks.

Digital assets responded to this shift in the macroeconomic backdrop with significant gains. Bitcoin and Ethereum showed impressive growth over the weekend, indicating a renewed appetite for risk. Investors appear to have moved away from an exclusively defensive stance and are beginning to adapt to a more favorable scenario.

Cryptocurrency Market Trading Results

Over the weekend, the volume of liquidations on the crypto market exceeded $330 million, with the vast majority coming from short positions. This is a classic short-squeeze scenario, where a sharp price increase forces sellers to close trades, further amplifying the upward momentum. The market is essentially "buying out" sellers, and this is a powerful bullish signal.

Bank of Japan and the Fed: A Defining Factor for Cryptocurrencies

The main events of the week, which will determine the medium-term trend, are the meetings of the Bank of Japan and the US Federal Reserve. My analysis shows that the Japanese regulator is likely to continue its course toward normalizing monetary policy. However, the key question is not the rate decision itself, but the rhetoric. If the Bank of Japan signals that the tightening cycle is nearing its end, it could weaken the yen and increase the attractiveness of risky assets, including cryptocurrencies.

For its part, the Fed is highly likely to keep rates at their current level. The market has already priced this in, but far more important are Jerome Powell's comments. Any hint of a possible rate cut in September would be a powerful catalyst for growth in Bitcoin and altcoins.

The yield on 10-year US Treasury bonds remains the main benchmark for all risky assets. It is the expectations around interest rates and liquidity that have dictated the dynamics of stocks, commodities, and cryptocurrencies in recent weeks. The central bank decisions this week will give the market a clearer understanding of whether this reassessment will continue through the end of June.

Expert Opinion: The current rise in Bitcoin amid falling oil prices and declining Treasury yields is a classic signal of a return to "risk-on" sentiment. However, I advise against rushing into aggressive purchases until the verdicts from the Fed and the Bank of Japan. If the regulators' rhetoric turns out to be tougher than expected, we could see a sharp correction that will curb unjustified optimism.