The cryptocurrency market has developed in direct or indirect connection to global events. Like stocks and other commodity markets, the crypto market is analyzed taking into account several relevant factors. In this article, let’s list the most important events that will unfold next week.
4 important events in the crypto money market that will take place this week
China to release 2022 economic data
After an uneven growth performance last year, the Chinese economy is expected to recover in 2023. The economic slowdown and the epidemics were followed by erratic recovery. Recently, an economic projection by the world bank states that China’s 2022 economic growth is 2.7%, relatively below the official target of around 5.5%.
Post-pandemic regulations had previously blocked the crypto movement in China. This will indirectly affect the crypto market positively as China misses its growth target. China will implement strategies to recover its economic growth target, which will result in increased spending. This could trigger inflation in the future, but crypto prices will likely rise in 2023.
Japan to announce rate decision
The Bank of Japan’s interest rate is expected to be -0.10 percent. Because Japan’s inflation is not high, a rise in the interest rate could shrink demand, increase the burden on companies and increase pressure on the government to pay off debt. The official decision will be made public by January 18, 2023.
The low interest rate is mostly considered positive and when it comes to crypto prices, they will be on the rise, enabling investors and traders to get more loans to invest in crypto. This, in turn, will increase demand and possibly raise the overall price of cryptocurrencies.
Europe to release minutes of December monetary policy meeting
Monetary policy meetings are usually held every six weeks. They include a summary of discussions and decisions, as well as a review of financial, economic and monetary developments and policy options. Accounts are usually released four weeks after the meetings, and the next announcement is expected on January 19, 2023.
Europe has been a good hub for crypto global development, and the monetary policy meeting announcement will be a pivotal event in determining future crypto success in the region. The impact on crypto prices will depend on economic development decisions. If a strict monetary policy strategy is adopted, this will not have a positive outcome for the cryptocurrency.
Several FOMC voters in the US will speak
As Cryptokoin.com reported, there are eight FOMC meetings that are held regularly every year. The agenda of the meeting is a review of economic and financial conditions. Determining the appropriate stance of monetary policy and re-evaluating the risks to long-term price stability and sustainable economic growth targets are discussed at these meetings.
While the nature of most cryptocurrency is volatile, the impact of the change in government regulation affects crypto spending and price. If meeting spending turns to restraint, crypto prices will be adversely affected and interest rates will rise.
As a result, according to Haseeb Shaheen, who expects activity on these dates, economic factors, among other factors, also require attention. This year looks favorable for the crypto market, but it is still too early for final perspective.
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