Analysis: Middle East ceasefire and Federal Reserve decision coincide, this week the crypto market focuses on geopolitical risks and interest rate trends

Odaily reported that the crypto market hopes to break free from months of ongoing geopolitical pressure this week. With the United States and Iran announcing a temporary peace agreement, Bitcoin surged to nearly $66,000 on Monday, up about 3.5% from last Friday; crypto-related stocks such as Strategy (MSTR) and Galaxy Digital (GLXY) also moved higher in pre-market trading.

However, the market remains cautious, as historical ceasefire agreements have broken down multiple times. The April ceasefire failed to last, and last month’s U.S. military actions triggered another ceasefire interruption, which briefly dragged down crypto asset prices.

This week’s focus will shift to the Federal Reserve’s interest rate decision. On Wednesday, Federal Reserve Chairman Kevin Warsh will preside over his first rate meeting, and the market expects rates to remain unchanged in the 3.50%-3.75% range.

Analysts point out that the new “dot plot” (showing Federal Reserve officials’ rate expectations) and shortened trading hours due to the Juneteenth holiday on Friday could reduce market liquidity. This week’s economic data and Federal Reserve policy guidance will determine whether the crypto market can use easing geopolitical risks to achieve further rebounds. (CoinDesk)