Markets
This Week is Crucial for the Crypto Market: Here’s Why
Armand Shirinyan (Arman Shirinyan)
The cryptocurrency market is going through a rough patch, and the turmoil we’re experiencing this week could change things.
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The cryptocurrency Marketplace can finally get one shaken after the upcoming release of CPI and PPI data this week. Chair Powell will also deliver his semi-annual testimony on monetary policy to the HFSC. With a 25 bps 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 aggressive stance on interest rates by the Federal Reserve in response to higher-than-expected inflation could have an impact on all financial markets, including cryptocurrencies.
On the other hand, if inflation appears 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.
Increased volatility in the 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 carefully for any clues about interest rates and the Fed’s strategy for combating inflation.
There is additional uncertainty due to the potential 25 basis point rate cut. This could indicate the Federal Reserve’s intention to boost economic growth if implemented, which could have a favorable impact on risk assets like cryptocurrencies. However, how these developments fit into current economic conditions and expectations will determine how the market responds overall.
The cryptocurrency Marketplace is going through a turbulent time right now. With resistance at the 200 EMA, Bitcoin is finding it difficult to maintain its position above $58,000. 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 different entities such as government agencies and ETF holders are exacerbating these technical difficulties.
About the author
Armand Shirinyan (Arman Shirinyan)
Arman Shirinyan is a trader, cryptocurrency enthusiast, and SMM specialist with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be in widespread use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of crypto trading pairs.