The new business week on global markets began with a drop in oil prices. Fortunately for investors, tensions in the Middle East are gradually easing. As a result, quotes for Brent and WTI headed downward. By contrast, stock futures posted confident gains. At the same time, the yield on U.S. Treasury bonds fell after a recent surge. The dollar's exchange rate also went into decline. Apparently, market participants are repricing cross-rate inflation risks ahead of important central bank decisions.

Digital assets reacted to these changes with a noticeable rise. In particular, Bitcoin and Ethereum gained substantially in price over the weekend. Ryan Lee, chief analyst at Bitget Research, shared what all this means in a conversation with BeInCrypto.

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Results of trading on the cryptocurrency market

On the eve of the weekend, investors held back from taking defensive positions. However, right now the financial sector is quickly adapting to a more favorable macroeconomic backdrop.

The Bank of Japan and the Fed will set the mood of the markets

The main events of this week will be the meetings of the Bank of Japan and the U.S. Federal Reserve. In the expert's view, the Japanese regulator will continue normalizing its monetary policy. On the other hand, the Fed will most likely keep the interest rate at its previous level. Right now it is extremely important for investors to hear regulators' plans — whether they will show cautious hawkishness or hint at an easing of inflationary pressure.

Undoubtedly, the main benchmark for market participants is becoming the yield on U.S. Treasury obligations. It is precisely expectations regarding interest rates and liquidity that determine the dynamics of stocks, commodities and cryptocurrencies in the near term.

The central banks' decisions this week, as Lee notes, will give a clearer understanding of whether this repricing will continue until the end of June.

Source: BeInCrypto