U.Today – The cryptocurrency market could finally get a jolt after the upcoming release of CPI and PPI data this week. Chairman Powell will also be giving his semi-annual monetary policy testimony before the HFSC. With the 25 basis point rate cut looming on the horizon, things can change quickly.
Inflation levels are assessed by economic indicators such as the PPI and CPI, which have a direct impact on monetary policy decisions. A more aggressive interest rate stance by the Federal Reserve in response to higher-than-expected inflation could have an impact on all financial markets, including the cryptocurrency market.
On the other hand, if inflation appears to be under control, markets could feel some relief and the price of digital assets could rise. Chairman Powell's testimony is also an important event because it provides insight into the Federal Reserve's outlook for the economy and its plans for future monetary policy.
The increased volatility in the cryptocurrency market can be attributed to any signs of changes in policies or the outlook for the economy. Investors and traders will be on the lookout for any hints regarding interest rates and the Federal Reserve’s strategy to combat inflation.
There is additional uncertainty due to the potential 25 basis point interest rate cut. This could signal the Fed’s intention to boost economic growth if implemented, which could have a favorable impact on risk assets such as cryptocurrencies. However, how these developments fit into current economic conditions and expectations will determine the broader market response.
The cryptocurrency market is going through a turbulent time at the moment. With resistance at the 200 EMA level, it has been struggling to hold its position above $58,000. is struggling to maintain its upward momentum and is currently trading below the $3,000 mark. Broader market forces such as mass liquidations and selling pressure from different entities like government agencies and ETF holders are exacerbating these technical difficulties.
This article was originally published on U.Today
