- Bitcoin consolidates ahead of key US dollar data
- All eyes are on the Federal Reserve
- January jobs report to offer more clues about a possible recession in the United States
Bitcoin hovers around $23k after rallying in January. It currently consolidates, mostly because investors await news from the United States economy.
Today is the month’s last trading day, but the trading week is still young. Starting with tomorrow, three major economic events may move Bitcoin and, with it, the entire cryptocurrency market:
- Federal Reserve’s decision
- Non-Farm Payrolls
- Average Hourly Earnings
Federal Reserve’s monetary policy decision
This is a big week for the US dollar, thus, a big week for Bitcoin too. On Wednesday, the Federal Reserve of the United States presents its monetary policy decision, which keeps markets in tight ranges.
No one wants to take a bet ahead of such an important economic event, even though the market seems to expect a 25bp rate hike. But it is more about nuances and the message that the Fed sends rather than what it actually does.
Therefore, the press conference following the FOMC Statement is more important for financial markets than the actual interest rate decision.
Non-Farm Payrolls
Two days later, the Non-Farm Payrolls data for January will be published. The degree of the upcoming recession in the United States is still unclear, or if there will be one. In any case, the jobs data will make it clear what to expect in the months ahead from the largest economy in the world.
Average Hourly Earnings
Inflation may have peaked, but do not expect to ease rapidly. Yesterday’s data from Europe showed renewed upside pressures, and one should not be surprised to see something similar in the United States
Together with the jobs data, the Average Hourly Earnings (AHE) will shed light on the trend for US wages. Upside pressures should translate into higher inflation in the months ahead, thus potentially moving the dollar and the overall financial markets.
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As the cryptocurrency market continues to expand, new events and possibilities often arise, giving the market fresh momentum. With Friday just around the corner, we are taking a look at some of the most exciting events to keep an eye on this week that could move the cryptocurrency market.
Firstly, the Coinbase listing of Arianee is taking place on Thursday. Arianee, also referred to as “the monetary Internet,” is a digital identity and asset protocol that wants to change the way digital asset ownership is registered, tracked and transfered. With this event, the cryptocurrency market could be witnessing the beginning of a new era.
The second event is Bitcoin taking center stage as its proposition day is this Thursday. This event is critical for Bitcoin as it could signal the potential of Bitcoin to benefit from a decisive break through the critical $50,000 level. This could spark renewed interest in the most popular cryptocurrency in the world and mark a price surge as the retail investors jump in with both feet.
The third and final event is Ethereum’s rally, as reports are indicating that the world’s No. 2 cryptocurrency is preparing for its next big leg up. Many traders are pouring money into Ethereum, which is powering the growing popularity of DeFi and fueling the growth of decentralized applications. With the Ethereum price rising above the $3,200 level for the first time this week, it has captured the attention of many.
At the end of the day, these events will determine if this Friday is a bullish or bearish day for the cryptocurrency market. With these three events expected to have a possible impact, it is sure to be an intriguing day. With that being said, it is important to understand the events and their implications as they can help acquire knowledge and gauge market sentiment.
