homecryptocurrency News3 of the biggest crypto stories to watch out for in the coming weeks

3 of the biggest crypto stories to watch out for in the coming weeks

In 2022, the US Federal Reserve was forced to hike interest rates by 0.75 basis points several times to battle record-high inflation. Such hikes were last seen nearly three decades ago, in 1994.

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By CNBCTV18.com Jan 30, 2023 7:42:51 PM IST (Published)

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3 of the biggest crypto stories to watch out for in the coming weeks
Owing to the fast-paced nature of the crypto industry, the digital asset space is usually rife with news updates and developments. Some of these events have the power to influence the price action of individual coins, and perhaps even the crypto industry as a whole.  As such, crypto enthusiasts are always on the lookout for the next breaking story upon which they can base their investment/trading strategies. Keeping this in mind, we have rounded up three important updates to keep an eye out for in the coming week. Tag along to know more. 

Federal Reserve willing to slow down interest rate hikes
In 2022, the US Federal Reserve was forced to hike interest rates by 0.75 basis points several times to battle record-high inflation. Such hikes were last seen nearly three decades ago, in 1994. Therefore, the Fed’s move to bump up interest rates had a significant impact on crypto prices and the broader financial markets as well. 
Bitcoin, the world's largest cryptocurrency, registered sizeable drops every time interest rates were introduced, as did the overall crypto market. Fortunately, in December 2022, CPI data showed that inflation had dropped to a one-year low. Crypto proponents believed that declining inflation could prompt the Fed to lower interest rate hikes. 
This is exactly what happened with the last interest hike on December 14, 2022; the Fed raised interest rates by 0.50 basis points. While this was a sizeable increase, it is still a quarter point lower than previous hikes. As such, the announcement caused Bitcoin and other cryptocurrencies to spike. BTC jumped from $16,953 on December 12 to $18,103 on December 14, after the announcement. 
The next interest rate hike is set to be announced on February 1, and it could have a major impact on crypto prices. Most experts believe that the Fed will implement a hike of 0.25 basis points. This is lower than previous hikes and could provide a boost to the crypto market, which has already started 2023 on a positive note. 
Recent comments from the president of the Philadelphia Federal Reserve, Patrick Harker, reinforce the notion of decreased interest rate hikes. "I expect that we will raise rates a few more times this year, though, to my mind, the days of us raising them 75 basis points at a time have surely passed," said Harker. "Hikes of 25 basis points will be appropriate going forward," he added. 
The Fed is expected to announce the latest interest rate hike by February 1 and it’s a news story to look out for. 
Cardano’s much anticipated Djed is set to go live
It’s not every day that a blockchain network launches its own stablecoin.  Such a development is sure to have an impact on the network’s native cryptocurrency, and its ecosystem as a whole. Even more so if the stablecoin’s minting and burning mechanism depends on the network’s native cryptocurrency. Well, that’s exactly the situation with Djed, Cardano’s upcoming stablecoin.
Back in July 2021, Cardano creator, Charles Hoskinson, announced the Djed project, an algorithmic stablecoin tied to the U.S Dollar. After many months of development and tweaking, COTI, the company collaborating in the development of the stablecoin, announced that Djed is expected to launch this week. “We are pleased to share another update about Djed's progress and to inform you that the launch is scheduled for next week,” read the company’s tweet from January 24. 
Djed can only be minted in exchange for ADA. Further, ADA holders are also expected to receive rewards when they mint Djed by staking their ADA coins. Therefore, this could encourage users to purchase ADA, driving its prices higher. This notion is backed by the fact that ADA has rallied more than 50 percent YTD in anticipation of the Djed launch.
Therefore, further price hikes can be expected when Djed is launched, making it a story to look out for in the coming week.
Upcoming updates in the SBF-FTX saga
Updates from the FTX court case are being closely followed, especially by the millions of investors who have funds tied up on the now-bankrupt exchange. The latest reports from the case suggest that Sam Bankman-Fried has tried communicating with key witnesses to influence their testimony in court.
Reportedly, SBF used the encrypted messaging service, Signal, to contact Ryne Miller, the current general counsel of FTX US. Miller supposedly holds key information which can prove to be detrimental to SBF. Therefore, in the aftermath of the event, the attorneys of the Southern District of New York have requested a stricter ban on SBF to restrict him from using messaging apps like Signal. They also requested the judge to restrict him from contacting any of his former colleagues. 
In response, SBF’s lawyers claim that the prosecution is trying to present SBF in the “worst possible light” and is ignoring the “full context” of the conversation in question. They also requested to remove the condition from SBF’s bail agreement that prevents him from accessing FTX or Alameda assets. 
SBF, who is already under strict confinement in his parents’ house, will likely face new bail conditions in the wake of this event. This is because SBF’s alleged attempts to coach witnesses could influence how the court battle unfolds. 
Any such developments are of paramount importance as the outcome of the FTX case is expected to have a significant effect on the crypto market. The court is expected to provide an update on these matters in the coming hearings and it is definitely a story to watch out for. 

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