Next week could spice things up for BTC as seven central banks face an inflation test

Next week is pivotal for markets, including Bitcoin, as seven major central banks—including the Federal Reserve, RBA, BOC, BOJ, SNB, and ECB—announce rate decisions while grappling with inflation concerns fueled by war-driven oil price spikes in the Middle East. Previously, markets anticipated rate cuts due to AI's disinflationary potential, but the conflict has reignited inflation fears. If central banks signal hawkish stances to curb rising prices, risk assets like Bitcoin could see downside volatility. Conversely, if they remain cautious or downplay inflation, risk assets might surge. Economist Ethan Harris noted the Fed typically waits to assess whether an oil shock primarily impacts growth or inflation, as such shocks are often transitory. The Bank of Japan's decision is considered particularly crucial for both Japanese markets and Bitcoin.

(Source：CoinDesk)