The cryptocurrency market is heading into a hectic week. Bitcoin and other risky assets are under traders’ focus as they await any clues from the US Federal Reserve, US labor data and the Bank of Japan.
The US-Iran deal, Fed decision and jobs data are in focus in the cryptocurrency market
The biggest event for the cryptocurrency market is The US-Iranian agreement. Pakistani Prime Minister Shehbaz Sharif announced that the peace agreement is expected to be signed on June 19 in Switzerland. This could lead to the reopening of the Strait of Hormuz, which could have a positive impact on Bitcoin and cryptocurrencies while easing geopolitical tensions.
After extensive talks, we are pleased to announce that a peace agreement has been reached between the United States of America and the Islamic Republic of Iran. The two sides announced an immediate and permanent cessation of military operations on all fronts, including…
– Shehbaz Sharif (@CMShehbaz) June 14, 2026
However, ahead of the deal, the cryptocurrency market is bracing for volatility due to the June 16-17 meeting. Federal Open Market Committee meeting. During this Fed meeting, Fed Chairman Kevin Warsh will make his first interest rate decision. Markets expect the Fed to keep interest rates unchanged. However, investors will listen to Warsh’s comments on inflation and upcoming policy measures in the future.
There are several economic reports on the way ahead of the Fed’s decision. On Tuesday, June 16, markets will receive housing starts and building permits for May.
Furthermore, retail sales, pending home sales and business inventories are the main factors to watch on Wednesday. The Fed will do that Decision on interest rates 2:00 PM ET. Warch’s press conference will be at 2:30 p.m. ET.
Business data can also influence the cryptocurrency market. Initial unemployment claims are scheduled for Thursday for this week. Economists expect Unemployment claims 226,000, down from the previous level of 229,000. Stronger jobs data could signal a tightening of monetary policy, which could impact risk assets like cryptocurrencies.
Bitcoin faces volatility risks as the Bank of Japan looks to raise interest rates
Meanwhile, the Bank of Japan is also taking focus. The Bank of Japan’s short-term interest rate is likely to be raised from 0.75% to 1.0% at its meeting on June 15-16. If approved, Japanese interest rates would reach their highest level since 1995.
Analysts say this could push global risk markets, including Bitcoin and the cryptocurrency market in general, under pressure.
In a post on X on Saturday, Arndxt, a pseudonym, warned that it could be “one of the biggest macro risks facing Bitcoin again.” The yen carry trade was cited as a motivating factor. He added that five years ago, investors borrowed yen cheaply and invested in high-yielding assets such as US stocks and cryptocurrencies.
“If the yen strengthens sharply, leveraged positions financed in Japanese yen may be forced to de-risk. This creates a global liquidity shock,” the expert added. “BTC, being a high-beta liquidity asset, often reacts poorly when funding conditions tighten,” he explained.
The analyst cited the period from July to August 2024 as recent examples. During that period, A The Bank of Japan raises interest rates It strengthened the yen and caused a rise in the cryptocurrency and stock markets. At that time, leveraged carry trading also declined, leading to a sharp sell-off in Bitcoin.
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