BLOFIN analysis suggests that this week will be the most critical week of Q1 2024. Major central banks such as the Bank of Japan and the Federal Reserve will announce their interest rate decisions, which will set the tone for monetary policy in the coming months. Due to the influence of risk aversion, the prices of BTC and ETH have experienced a pullback. However, traders' bullish sentiment towards BTC has not been significantly affected, and expectations of interest rate cuts continue to dominate investors' assessment of BTC's medium to long-term trend. The price drop over the weekend resulted in the closure of most high-leverage altcoin positions, causing the perpetual contract annualized funding rate for the majority of altcoins to fall below 30%, which is considered a relatively safe level in a bull market.

Wu learned that according to Blofin analysis, this week will be the most critical week of Q1 2024. Major central banks, led by the Bank of Japan and the Federal Reserve, will announce their interest rate decisions this week, setting the tone for monetary policy in the coming months. Due to the influence of risk aversion, the prices of BTC and ETH have experienced a pullback. In the medium to long term, traders' bullish sentiment towards BTC has not been significantly affected, and the expectation of interest rate cuts still dominates investors' judgment of BTC's medium to long-term trend. The price drop over the weekend resulted in the liquidation of most high-leverage altcoin positions, causing the perpetual contract annualized funding rate of the majority of altcoins to fall below 30%, which is a relatively safe level in a bull market.

BLOFIN: This week's major central bank interest rate decisions will impact the crypto market.