This week is predicted to be the most volatile period of 2026 for the crypto market. A number of US economic and macro policy agendas will be in the spotlight for investors and traders.
From inflation data, liquidity injection by the Federal Reserve, to economic announcements from President Donald Trump, all have the potential to drastically alter market direction. In addition, regulatory developments related to the crypto market structure bill will also determine sentiment at the end of the week.
Inflation Data and Fed Policy: Determinants of Crypto Market Direction
Earlier this week, investors’ attention was focused on the release of US Personal Consumption Expenditures (PCE) inflation data , which is the main reference for the Federal Reserve. The latest data showed PCE inflation rose 2.9% on an annualized basis, exceeding market expectations and dashing hopes of an interest rate cut in the near future.
This puts risky assets such as Bitcoin and Ethereum under further pressure, as investors tend to be risk-averse amid high inflation. Market participants are now waiting to see if the pace of price increases will start to slow down or strengthen further.
Furthermore, on Tuesday, the Federal Reserve is scheduled to inject $14.6 billion worth of liquidity into the financial markets. The move is seen as a temporary stimulus effort to stabilize the market after disappointing macroeconomic data.
Some analysts think that this additional liquidity could boost interest in speculative assets such as Solana (SOL), Dogecoin, and Pepe Coin (PEPE). However, it should be noted that this liquidity injection is different from the full quantitative easing (QE) policy that has been undertaken in the past.
Fed’s Labor and Balance Sheet Data: Direct Impact to Crypto Sentiment
On Wednesday, initial jobless claims data will be released and is an important indicator of the strength of the US labor market. The latest data showed claims falling to 206,000, signaling a still solid labor market. If this trend continues, the strengthening US Dollar could pressure the prices of cryptos such as Ripple and Tether.
Conversely, if the labor data weakens, speculation regarding monetary policy easing could return and push crypto prices up. On Thursday, the market focus will turn to the Federal Reserve’s balance sheet report.
Investors will be watching closely for any tightening or loosening of liquidity that could trigger a broad shift in risk sentiment. Even small changes to the Fed’s balance sheet can have a significant impact on Bitcoin (BTC) and Ethereum (ETH) price volatility. Therefore, market participants are highly alert to any policy signals emerging from this report.
Regulation and Economic Announcements: Crypto Weekend Determinants
In addition to macroeconomic factors, regulatory developments are also a major concern this week. The White House has set a March 1 deadline to reach an agreement on the CLARITY Act bill, which will be the cornerstone of the crypto market structure in the United States.
The negotiation process between representatives of the digital asset industry and banks is still at an impasse, especially regarding the issue of providing yields and reward schemes by crypto issuers. If a compromise is reached, this could provide legal certainty and encourage institutional investor interest in the crypto market.
Towards the end of the week, markets will also be looking forward to an economic announcement from President Donald Trump scheduled for Friday. Any new statement or policy from the White House has the potential to trigger a quick reaction in the markets, especially if it relates to regulation or economic stimulus. The combination of macro data, monetary policy and regulatory developments makes this week one of the most decisive periods for the future of the crypto market.
Conclusion
With a series of important events taking place, the crypto market is expected to experience high volatility throughout this week. Market participants should keep a close eye on any developments in economic data, Federal Reserve policies, and regulatory dynamics that could suddenly change the direction of prices.
Investors’ decisions in the face of this week of uncertainty will largely determine where the market stands in the months ahead. Whether the market will stabilize or enter a new phase of decline will be answered in the next few days.
Originally written by: Intifanny A.P
Source: Pintu News
Published on: 23 February 2026
Link to original article: 5 Most Shocking Crypto Events of the Week: Get Ready for Extreme Volatility!
