Bitcoin faces two major catalysts this week as traders prepare for a likely Federal Reserve rate increase and a Senate vote on the CLARITY Act. At the same time, Bitcoin Suisse plans to move up to 60 jobs abroad as it expands internationally.
The Federal Reserve will announce its September interest rate decision on Wednesday. Markets currently assign an 85% to 90% chance of a 25-basis-point increase. The week's calendar also includes August retail sales and an auction of 20-year securities. Still, the Fed decision remains the main event for crypto markets.
Rate expectations strengthened after August employment data showed 162,000 new jobs, triple the forecasts. Producer inflation also accelerated to 5.4% annually, while headline CPI reached 3.4%. Monthly core CPI also came in slightly hotter than expected. At the same time, oil stayed above USD 100, while U.S. diesel prices reached a new record.
Bitcoin has already fallen from USD 82,400 to below USD 78,000 as rate-hike expectations increased. Crypto prices also fell after Fed Chair Kevin Warsh's Jackson Hole speech several weeks ago.
Has the expected rate increase already entered Bitcoin's price? Traders will watch Warsh's post-meeting press conference for signals about whether Wednesday's move stands alone or starts another tightening cycle.
Before the Fed decision, the Senate will hold a cloture vote on the CLARITY Act at 2:15 p.m. Tuesday. The motion needs support from 60 senators to advance debate. Republicans released updated legislation last week with new rules for non-decentralized DeFi protocols. The text also clarified how credit unions can participate in crypto activities.
On Sunday, Republicans published another final draft that included an ethics proposal President Donald Trump supports. That vote places another major policy event immediately before the Fed decision.
Bitcoin and altcoins have already shown strong sensitivity to changing policy expectations. Their recent declines came as markets increased the probability of tighter monetary policy.
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Separately, Bitcoin Suisse plans to relocate as many as 60 positions from its Zug headquarters. The company will move mainly back-office and administrative roles to Bratislava or Vietnam. Employees received the plan during a Friday town hall. Bitcoin Suisse will determine the final number after a 10-day consultation, while the first layoffs will begin before year-end.
Bitcoin Suisse began operations in 2013 with crypto trading and custody before adding staking and lending. It now plans to serve private clients, family offices and institutions. The company has secured a MiCAR license in Liechtenstein, licenses in Bermuda and full regulatory approval in Abu Dhabi. Group CEO Andrej Majcen said international growth now ranks as a priority.
Majcen linked the relocation to lower operating costs rather than the current crypto downturn. Zug will remain the headquarters, and the Bitcoin Suisse name will continue. The company also remains open to acquisitions in Switzerland as it expands beyond its original focus on the domestic crypto market.
Bitcoin enters the week with two immediate policy tests: Tuesday's CLARITY Act vote and Wednesday's Federal Reserve decision. Meanwhile, Bitcoin Suisse is moving part of its workforce abroad as it expands its international wealth and asset management strategy.