Hey, last Tuesday there were some very important events that significantly affect us crypto operators. We had several Fed speeches in a row, and as you know, any signal from them directly impacts BTC and ETH.

Barkin spoke first, and depending on his tone regarding inflation and interest rate cuts, it greatly influences the dollar and bond yields. If he adopts a hawkish stance with tightening rhetoric, the dollar becomes more attractive and cryptocurrencies come under pressure. But if he acknowledges that inflation is falling and opens the door for rate cuts, then the scenario changes for us.

Then came Bowman, who is one of the key figures on the monetary policy committee. His position strongly reinforces what the market expects regarding the pace of cuts. If he sounds too hawkish, concerns about tight liquidity increase and people sell off crypto. But if he signals a dovish stance, risk assets gain momentum.

The data everyone was watching was the December JOLTS report. You know, this number is one of the main indicators the Fed monitors to understand the labor market. If it comes in above expectations, it means the market is still quite resilient, which reduces the chances of rate cuts—and that’s bad for us in crypto. If it comes in below, it shows cooling, increases expectations of cuts, and then we can breathe a little easier.

Finally, Bostic, the president of the Atlanta Fed, also gave his outlook on where policy is heading. All these guys speaking on the same day creates interesting volatility. Depending on how they position themselves, we see strong movements in BTC and ETH. It’s the kind of day we keep a close eye on to understand where liquidity is flowing.