- 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 been dull recently, with Bitcoin trading between $60,000 and $76,000 over the last two months. The Fear and Greed Index remains in the fear zone, while 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 for 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 stages of negotiation. In a recent statement, Senator Cynthia Lummis noted that the revisions were being finalized, offering robust protections for DeFi developers and stablecoin yield.
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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 likely push crude oil prices higher.
More signs of escalation will be bearish for the crypto market because it will make it hard for the Federal Reserve to cut interest rates in the foreseeable future, even after Kevin Warsh becomes the next Federal Reserve Chair.
US Non-Farm Payrolls Data to Impact Crypto Prices
The US will also 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 those coming from Kaiser Permanente, whose 30k employees returned to work after a strike. The economy shed over 92,000 jobs in February.
Analysts expect the upcoming numbers to show the unemployment rate ticked up to 4.5% in March. These numbers indicate that the labor market has stagnated, raising concerns that the American economy has entered stagflation.
A weaker-than-expected jobs report will be bullish for the crypto market because it will signal that the Federal Reserve will cut interest rates.
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