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The cryptocurrency market ends the week on an optimistic note. The capitalization of digital assets is approaching $ 1 trillion, the Bitcoin rate confidently overcame the mark of $ 21,000.
Next week will remind traders about the main factor of the current crypto winter 2.0, which since November 2021 has been steadily reducing the rate of digital currencies, which have lost a total of 75% of historical highs.
The main fundamental event of the next five-day week will be the meeting of the Central Banks of the European Union and Japan. If the Japanese Central Bank will certainly manage to keep the rate, the ECB intends to raise it for the first time since 2016. The market reaction to the rate hike will be unequivocally negative and may turn into strong sell-offs, with the tightening of monetary policy above forecasts.
Additional pressure will be exerted by insider information about the Fed’s intentions to raise the rate by 1% at a time. This alignment is supported by 30% of speculators, judging by the occupied positions in the futures.
Meetings of central banks fall on Thursday. After the decision, the head of the ECB will hold a press conference, strengthening the negative for Bitcoin with his mention of the environmental harm of PoW mining. The regulator is in favor of a legislative ban on the mining and transaction of BTC in the EU.
Before the meeting of 4 central banks at once in one day (the Bank of Japan ECB, the Bank of Turkey and South Africa), on Tuesday the data on consumer inflation of the Eurozone will be released. This figure was a record for the United States last week, which led the dollar to parity with the euro.
The cryptocurrency market ignored the rate of increase in US prices, but another rise in CONSUMER inflation in the EU may lead to an unexpected decision by the ECB to increase the rate of rate growth. In this case, the fall of shares will accelerate and drag down the cryptocurrency market.
Among the positive aspects of the coming week, capable of raising the Bitcoin rate, it is worth highlighting the index of purchases of new buildings in the United States. Strong long-term consumer demand is the basis for the development of the economy.
Bitcoin will be positively affected by China’s decision to raise the main interest rates on loans on Wednesday. The Celestial Empire may take this step due to the fall in GDP last week, which went into the negative zone for the first time since the fall into the Covid-19 pandemic.
The cryptocurrency market may grow on Tuesday on the news from the fields of the Bloomberg cryptocurrency summit. The leading business news agency and analytical center will gather prominent representatives of the crypto industry representing all areas and discuss with them the future of DeFi, NFT, the development of the Metaverse direction, legislative initiatives.
The event is expected to feature a speech by the founder of FTX, a number of senators and representatives of regulators, creators of cryptocurrencies and DeFi protocols.
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