The cryptocurrency market is currently dominated by bears and a harsh winter. The leading crypto Bitcoin (BTC) cannot get out of the $ 19 thousand to $ 20 thousand range. Similarly, the leading altcoin Ethereum was unable to maintain its high altitude after Merge, which had high hopes. The popular meme coin Shiba Inu (SHIB) failed to gain traction despite events like the Shiba Eternity download day. However, according to experts, it is possible that this week’s events will lead to strong crypto volatility.
Highlights for BTC, SHIB and altcoins
As you follow on Kriptokoin.com, the crypto market turned upside down as the Fed started to tighten. So crypto currently has a strong correlation with the broader market. Therefore, it is currently highly dependent on macroeconomic events. The Federal Reserve is currently undergoing quantitative tightening (QE) to curb rising inflation levels. The current macroeconomic environment is unfavorable for a strong crypto rally. The Fed’s hawkish stance is destroying all the excitement in the market.
However, any pivot signal from the Fed could trigger a rally, experts say. Some events this week are likely to provide that spark. However, the reverse of the same events could also result in a crypto crash.
- First, several major companies will release their earnings reports. Of these, JP Morgan Chase, Citigroup, Morgan Stanley and BlackRock will announce their earnings. If they meet expectations, they are likely to lead to a strong crypto rally. However, the market is currently afraid that many of these companies will not be able to meet these expectations.
- Second, the IMF will publish the Global Financial Stability Report. Meanwhile, the World Bank has already issued recession warnings. If the Fed returns to combat a recession, it’s possible for the crypto market to rise.
- Third, the Federal Open Market Committee (FOMC) will release the minutes of its September meeting. If the Fed shows any signs of regaining its hawkish stance, BTC, SHIB and altcoins could take it as a green signal.
- Perhaps the most important event will be the US September Consumer Price Index (CPI). If the CPI signals bearish, a strong crypto rally is likely. However, the reverse is also true.
- Along with the US CPI, the US Producer Price Index (PPI) will also come. The effects are likely to be similar.
- The US will also publish its first unemployment claims. Unemployment data is a strong indicator of the Fed’s fight against inflation.
- Finally, the Bank of England (BoE) pivot will end on Friday. The BOE will have to decide whether to continue or revert to a hawkish stance.
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