"A week before U.S. rate decision and Do Kwon sentencing… a watershed for the virtual-asset market"

This week, with the U.S. Federal Open Market Committee (FOMC) rate decision and the sentencing of Terraform Labs co-founder Do Kwon scheduled, the virtual-asset market is expected to face a major turning point.

On the 8th (local time), according to crypto-focused media CoinDesk, the Chicago Mercantile Exchange (CME) FedWatch is pricing in a high probability of over 85% that the FOMC on the 10th will lower the policy rate by 0.25 percentage points to 3.50–3.75%. As this is a factor that influences investor sentiment for risk assets overall, analysts say volatility may increase before and after the announcement.

Additionally, Terraform Labs co-founder Do Kwon is set to be sentenced on the 11th at a U.S. federal court in New York. Do Kwon admitted to charges including fraud and conspiracy in August, and U.S. prosecutors have sought a sentence of up to 12 years. The 2022 collapse of the UST algorithmic stablecoin and the crash of LUNA triggered a sharp decline across the virtual-asset market at the time, and observers say this sentencing could also affect industry regulatory discussions.

The outlet said, "This week is a period in which the direction of interest rates and major judicial issues are simultaneously highlighted, and events that could affect short-term market sentiment are concentrated."