- The crypto market will react to the upcoming CLARITY Act progress in the United States.
- The US-Iran war has moved into a new turn with the Houthis being involved.
- The US will publish the latest non-farm payrolls (NFP) data later this week.
The crypto market has become dull recently, with Bitcoin remaining between $60,000 and $76,000 in the last two months. The Fear and Greed Index is still in the fear zone, while the volume and futures open interest have dropped. This article looks at the top crypto news to watch this week.
CLARITY Act is the Top Crypto Market News This Week
The main crypto market news this week will be on the CLARITY Act, which aims to clarify the powers between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The bill has been stuck in the Senate in the past few months amid the rising concerns about stablecoin yield, which banks have come up against. Banks argue that the bill will lead to capital flight from their institutions into crypto companies like Coinbase and Kraken.
Coinbase, which made over $1 billion in stablecoin revenue last year, has become the most vocal opponent of the bill.
Therefore, traders will focus on the CLARITY Act as it enters the final negotiations. In a recent statement, Senator Cynthia Lummis noted that the revisions were being finalized, offering robust protections for DeFi developers and stablecoin yield.
READ MORE: Gold Price Forecast: Top Reasons XAU is in a Strong Freefall
US-Iran War Will Impact Crypto Prices
The crypto market will also react to the ongoing US-Iran war, which has now entered a new phase. Yemen’s Houthis have entered the playground and have started launching rockets towards Israel.
At the same time, US troops have arrived in the region with a goal of taking Kharg Island and protecting the Strait of Hormuz. Iran has threatened to continue fighting, a move that will lead to higher crude oil prices.
More signs of escalation will be bearish for the crypto market because it will make it hard for the Federal Reserve to cut interest in the foreseeable future even after Kevin Warsh becomes the next Federal Reserve Chair.
US Non-Farm Payrolls Data to Impact Crypto Prices
Meanwhile, the US will publish the latest non-farm payrolls data on Friday, providing more color on the state of the economy.
Economists expect the report to show that the economy created over 50k jobs, with most of these being from Kaiser Permanente, whose 30k employees went back to work from a strike. The economy shed over 92,000 jobs in February.
Analysts believe the upcoming numbers to show that the unemployment rate ticked upwards to 4.5% in March. These numbers mean that the labor market has stagnated, raising concerns that the American economy has moved into stagflation.
A weaker-than-expected jobs report will be bullish for the crypto market because it will send a sign that the Federal Reserve will opt to cut interest rates.
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