Strong Crypto Rally Expected Due To These 7 Events
The crypto market is showing bearish sentiments currently. Bitcoin, the largest cryptocurrency, is unable to break out of the $19K-$20K range. Similarly, Ethereum is unable to return to its pre-merge levels. However, the events of this week can spark a strong crypto rally.
The crypto market is currently strongly correlated to the broader market. Hence, it is currently dependent upon macroeconomic events. The Federal Reserve is currently engaging in quantitative tightening to curb soaring inflation levels.
Key Events For Crypto Rally
The current macroeconomic environment is unfavorable for a strong crypto rally. The Fed’s hawkish stance is draining any enthusiasm from the market. However, any indication of a pivot from the central bank can jump-start a rally. Certain events this week can provide that spark. However, those same events can result in a crypto crash.
Firstly, several major corporations will release their earnings report. JP Morgan Chase, Citigroup, Morgan Stanley, and BlackRock will all reveal their earnings. If they meet expectations, it can result in a strong crypto rally. However, the market is currently fearing that many of these companies will fail to meet those expectations.
Secondly, the IMF will release its Global Financial Stability Report. The world bank has already given recession warnings. If the Fed pivots to tackle a recession, the crypto market can surge.
Thirdly, the Federal Open Market Committee will release its minutes for the September meeting. If the Fed shows any sign of reeling back its hawkish stance, the crypto market can take that as a green signal.
Perhaps the most important event is the release of the Consumer Price Index for September. The CPI will set off a strong crypto price movement depending on the data. Similarly, the US will also release its Producer Price Index.
The US will also release its initial jobless claims. The unemployment data is a strong indicator of the Fed’s fight against inflation. Lastly, the pivot by the Bank of England will end on Friday. The BOE will have to make a decision on whether to continue or revert back to a hawkish stance.
Will Crypto Skyrocket
The crypto market can see a strong rally this week. However, a bad series of data can also result in another bottom in the market.
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