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This Week Is Crucial For The Cryptocurrency Market: Here’s Why
Armani Shirinyan
The cryptocurrency market is going through a rough patch and the shock we are having this week could change things.
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The cryptocurrency market might finally get a shake following the upcoming release of CPI and PPI data this week. Chairman Powell will also be giving his semi-annual testimony on monetary policy at the HFSC. With a 25 basis point rate cut looming on the horizon, things could change quickly.
Inflation levels are assessed using economic indicators such as PPI and CPI, which have a direct impact on monetary policy decisions. A more hawkish stance on interest rates by the Federal Reserve in response to higher-than-expected inflation could impact all financial markets, including cryptocurrencies.
On the other hand, if inflation seems to be under control, markets may feel some relief and the price of digital assets may rise. Chairman Powell’s testimony is also a significant event because it provides insight into the Federal Reserve’s outlook for the economy and its plans for future monetary policy.
Increase in volatility on cryptocurrency market can be attributed to any sign of policy changes or changes in the outlook for the economy. Investors and traders will be watching closely for any clues about interest rates and the Fed’s strategy to fight inflation.
There is further uncertainty due to the possible 25 basis point rate cut. It could indicate the Federal Reserve’s intention to stimulate economic growth if implemented, which could have a favorable impact on risky assets such as cryptocurrencies. However, how these developments fit into current economic conditions and expectations will determine how the market will primarily respond.
The cryptocurrency market is going through a turbulent period at the moment. With resistance at the 200 EMA level, Bitcoin has found it difficult to maintain its position above the $58,000 mark. Ethereum is struggling to maintain its upward momentum and is currently trading below the $3,000 mark. Broader market forces such as massive liquidations and selling pressure from various entities such as government agencies and ETF holders are exacerbating these technical difficulties.
About the author
Armani Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with over four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently, he focuses on news, in-depth articles on crypto projects, and technical analysis of cryptocurrency trading pairs.