Bitcoin and the altcoin market are making headlines due to several financial crises and unpredictable scrutiny from the SEC. It looks like next week will not be an exception as the market will continue to be volatile ahead of major macro events. With a few key macro events on the horizon, investors and analysts are keeping a close eye on the market’s next moves. From the Fed’s meeting to Bitcoin’s difficulty adjustment, each of these events has the potential to significantly impact the trends and direction of the cryptocurrency industry in the coming week. Here are the details…
What can Bitcoin traders expect next week?
As we reported on Kriptokoin.com, this week the crypto market faced intense volatility, with a sharp drop on Friday. The cryptocurrency market is always full of surprises and this week was no different. Various events shook the market, including the SEC’s Binance investigation and the financial crisis at crypto bank Silvergate. Following the FUD situation, leading assets like Bitcoin and Ethereum have dropped over 5 percent and are now aiming to drop below critical support levels, which could soon lead to another correction in the market. Also, there are a few critical macro events that will keep the same pressure on the crypto market next week as investors have not yet gained enough confidence to buy on the bearish.
PMI data highlights
PMI data is an important economic indicator that can provide valuable information about the health of various sectors, including the cryptocurrency market. S&P Global Asia Sector PMI and S&P Global Dubai PMI will be released on March 7 and 9, respectively. PMI data can provide a graph of the health of the cryptocurrency market, including institutional adoption, level of innovation and development, and regulatory uncertainty. All in all, positive data will significantly increase the market’s bullish potential next week.
Fed meeting minutes released
Although the Fed meeting will be held on March 22, the recent release of the minutes of the February 1 meeting by the US Federal Reserve may put bearish pressure on the market as more rate hikes are on the horizon. This could pose a significant challenge for the cryptocurrency market in the medium term. A further increase in interest rate in March will create a pullback for the crypto market and Bitcoin could drop below the $19,000 level, forcing several assets to drop significantly.
Adjustments to Bitcoin difficulty setting will be made
Every fortnight the Bitcoin network goes through a process called “hashrate tuning”, which helps maintain the stability and security of the network. This event could have an impact on the cryptocurrency market, as changes in the hashrate can affect the difficulty of mining and the overall supply and demand for Bitcoin. While Bitcoin is currently on a decline, mining difficulty rising from 43.05T to 44.01T on March 10 will create a bearish scenario for Bitcoin, which will eventually reduce the profitability of miners and push multiple assets to bottom.
Other upcoming events
US factory orders data will be released on March 6 at 18 CEST. On Tuesday, March 7, Fed Chairman Jerome Powell will deliver a speech. On March 8, Christine Lagarde, President of the European Central Bank (ECB), will make a speech. At 13:00, when the ECB President will make a speech, the GDP data in the euro area will be released. On the same day, at 16:15, the change in non-farm employment in the USA, the speech of the FED President at 18:00 and the rate of US job opportunities will attract attention. Also on the same day the “beige book” of the USA will be published.
On Thursday, March 9, China’s CPI data will be released in the morning. At 4:30 p.m., applications for U.S. unemployment benefits will be announced. On March 10, the US average hourly incomes, average hourly earnings, non-farm employment and unemployment rate will be announced at 16:30 CEST. All in all, the next week will be significant for the cryptocurrency market as several macro events will take place. Investors should be aware of and alert to potential risks and opportunities in the market. As volatility is expected to continue, it’s more important than ever to have a well-diversified portfolio and a long-term investment strategy.
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