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Bitcoin ends the week with a negative record, the main cryptocurrency has never fallen in history for seven consecutive weeks. Investors continue to leave risky assets and the digital currency is no exception, although the dynamics of BTC quotes looks better than the NASDAQ stock index.
Demand for cryptocurrencies at the end of the week allowed Bitcoin to avoid updating the May lows, unlike the technology stock market.
As a result of the rebound, both market indicators drew a technical reversal signal on the chart. This was facilitated by the positive events of the end of the week – the People’s Bank of China lowered the five-year LPR rate, the European Central Bank postponed the tightening of monetary policy until July. The actions of financial regulators of key economies of the world leveled the negative economic statistics of the past week.
Next week, the problems of the global economy will be recalled by indicators of the IFO business climate and PMI business activity in Europe. Cryptocurrency and stock indices have continued testing lows after their release in the first half of the working five-day week.
An important point will be the publication of the Protocols of the US Federal Reserve, where investors will pay attention to the comments of the document that determine the further directions of monetary policy. The US financial regulator is determined to raise rates to combat inflation, which increases capital flight from risky assets.
A positive moment for the cryptocurrency market can be political events. To what extent the world economy is ready for the retail distribution of digital assets, the forum in Davos will show. On Tuesday, the DC Blockchain Summit will be held in Washington. The Financial Services Committee of the US Congress will hold hearings on the Fed’s CBDC on Wednesday and outline ways to regulate stablecoins.
The political agenda of the week will be saturated with other events that indirectly relate to digital currencies, but affect the economic picture of the world as a whole. The attention of traders will be attracted by Asia, where US President Joe Biden is on tour.
The American leader will take part in the QUAD security summit with the participation of Japan, India and Australia. The four countries created this construct to counter China’s expanding influence in the region. This time, the agenda will include overcoming the energy crisis, discussing the EU’s assistance in overcoming gas dependence on supplies from the Russian Federation.
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