The cryptocurrency market is gearing up for a volatile week, filled with major events that have the potential to change investor sentiment and alter price trends.
From the Federal Reserve’s long-awaited interest rate decision to the Federal Open Market Committee (FOMC) meeting and the hearing of the legal battle between Binance and the US Securities and Exchange Commission (SEC), all eyes are on these crucial events next week.
Next Week’s Macro Events and Crypto Market Reaction
FOMC Meeting: Will the Fed raise interest rates again in 2023? After ten consecutive increases and a pause in June, rates rose 25 basis points in July to 5.25-5.50%. The decision depends on the US CPI data, especially core inflation. August CPI rose 3.7% year-on-year, up from 3.2% in July, while core CPI was 4.3%, up from 4.7% in July, leaving the Federal Reserve and markets in uncertainty.
When Federal Reserve Chair Jerome Powell and his team meet next week, they are unlikely to signal that they are done with interest rate increases. With inflation remaining above the 2% target and the economy robust, U.S. central bankers are expected to maintain a trend toward tighter policy during their Sept. 19-20 meeting, even if they keep rates unchanged. changes.
Last week’s CPI data failed to generate significant volatility for Bitcoin. However, the Fed’s interest rate announcements are expected to induce 1% market volatility based on recent trends. At the moment, Bitcoin is trading in the $26,000 range, comfortably above bearish levels.
Binance vs. SEC Hearing: A key event on the horizon for next week is the court hearing between Binance and the SEC. A ruling in favor of the SEC could trigger a major market sell-off, while a decision supporting Binance could trigger a buyout demand.
The US SEC recently presented evidence against Binance US, highlighting the exchange’s failure to comply with a prior consent order. Binance US responded, claiming that the SEC’s demands for an emergency order are unjustified.
Last month, the SEC filed confidential documents that caused unrest in the cryptocurrency market. They have now filed a “motion to unseal” to reveal these documents. Amid the ongoing lawsuit, several Binance and Binance US officials have left, impacting investor confidence and trading volumes.
The SEC has filed 31 exhibits to support its motion to compel and oppose Binance US’s request for a protective order. Only 10 of these 31 tests were included in the latest presentations. The SEC also asks the court to reject BAM’s request for an injunction. Judge Faruqui has set the next hearing for September 18.
On September 15, the SEC moved to unseal or withdraw its previous motion to seal documents related to the Binance case. Both sides agreed to disclose numerous SEC filings from last month.
The SEC has expressed concern that Binance US (BAM Management and BAM Trading) is not properly separating its wallets, systems, and personnel from Binance. If the SEC wins the case, which is expected to extend beyond Gensler’s tenure, Binance could face heavy fines, operating restrictions, and strict oversight of its BNB token. Additionally, CZ could be permanently banned from managing financial companies.
With the SEC arguing that Binance US is putting $2.2 billion of funds allegedly based in the US at risk, these assets could be seized if they are linked to illegal activities.
By Leonardo Pérez