Cryptocurrency market will finally face some volatility increase since September
The past few weeks have been relatively calm on the cryptocurrency market as a lack of financial-related events allowed some assets to enter a short-term local recovery rally. However, next week, investors should prepare themselves for the upcoming volatility spike and here is why.
FOMC, CPI, PPI and more
In only one week, several macro-economical data reports will be released to the public, which will most likely cause some movements on both the financial and the digital asset markets. CPI data will once again tell investors how financial regulators handle inflation in the country and if there is a need for additional hardening of the monetary policy.
FOMC meeting minutes should give investors more clarity about how regulation led to the decision to raise the prime rate in the United States. With more details, investors will be able to form a definitive opinion about how the institution will react to the feature.
Depending on the narrative of financial regulators, the cryptocurrency market will react with a volatility increase upwards or downwards. As for now, the lack of effect on inflation according to the last CPI report makes most investors bet on a continuation of the strict monetary policy.
not in pricing
Despite the importance of upcoming events, the largest digital assets such as bitcoin are not pricing in any results as the price performance of digital gold remains at an anemic level.
Bitcoin has been moving in a low volatility price range for the past few weeks, bouncing between the $18,000 and $22,000 price levels. Such movement suggests that neither bulls nor bears are dominating on the market, and the outcome of the aforementioned event should bring us more clarity.
