Cryptocurrency Traders Forecast Price Volatility for FOMC and CPI Data This Week
Due to a number of significant macroeconomic developments this week, cryptocurrency traders are bracing for extreme volatility.
The Consumer Price Index leads the week on Wednesday, while the Federal Open Market Committee (FOMC) meeting is the major event that same day. The post-FOMC speech by Fed Chair Jerome Powell may have greater significance than the actual interest rate decision made by the central bank.
The Producer Price Index and jobless claims on Thursday may intensify market volatility.
Wednesday and Thursday of next week are two days that are jam-packed with economic data.Wednesday is FOMC & CPI day.PPI and unemployment claims are on Thursday.Anticipate significant volatility during those days, along with potential derisking in the days before. Don’t break apart in the interim:) tweet.com/Ue92wNDliM
June 6, 2024, Daan Crypto Trades (@DaanCrypto)
In the upcoming days, experts are recommending traders to avoid using leverage. Given that they are unaffected by transient volatility, a growing number of astute investors are opting to participate in cryptocurrency presales.
The Week That Would See The Crypto Bull Market Take Off Driven by the robust inflows noted by spot BTC ETFs, the price of Bitcoin rose steadily to $71,800 last week before experiencing a slight decline.
It is impossible to exaggerate the significant relationship between Bitcoin and worldwide liquidity. The graph below illustrates how sensitive Bitcoin is to macroeconomic variables by dividing the price of BTC by the M2 Money Supply.
Along with the M2 money supply’s recent surge, institutional investment in Bitcoin has also begun to rise. Large investors are reportedly investing $1 billion to Bitcoin every day, according to a recent research from CryptoQuant. This conduct is similar to that which preceding Bitcoin’s rise from $10k to $69k in 2020.
#Bitcoin: The whales’ purchasing appetite has significantly returned “They are now returning with strong buying power once again, which indicates that the current prices are suitable for buying and accumulating.” – From @abramchart Complete article: https://t.co/lYGUHk72Hf
Twitter: @cryptoquant_com CryptoQuant.com 7 June 2024
As a result, conditions are favourable for another cryptocurrency bull run, which could be sparked this week by a bright macroeconomic forecast.
The price of oil suggests that the CPI inflation would follow the expectations of the market.
Oil is alerting you to the impending shorter-term decline in inflation rates. In the upcoming quarter, risk assets might see improved conditions thanks to this and today’s employment figures. Congratulations if you’ve managed to save money over the last two months; things should get simpler from here. tweet.com/KJRUaZPUOL
– May 4, 2024, ted (@tedtalksmacro)
In a similar vein, the US Federal Reserve is likely to maintain its benchmark interest rate range of 525–550 basis points, according to the CME FedWatch tool.
Therefore, Fed Chair Jerome Powell’s post-FOMC address becomes the pivotal event. It’s crucial to keep in mind that Powell’s dovish remarks at the beginning of March ignited a rally in the stock market.
A further dovish statement might serve as a clear indication to the markets that more quantitative easing is imminent. Notably, last week saw the beginning of interest rate reductions by the European Central Bank and the Bank of Canada.
ICO Demand Is High Despite Volatility in Cryptocurrency Prices
Crypto presales are in great demand since they are immune to transient fluctuations in the market.
As an example, the Sealana meme coin has drawn interest from cryptocurrency traders, having raised more than $3 million during its initial coin offering. Given that the presale for $SEAL ends on June 25th, there’s a good chance it launches during a significant bull run.
Because of this, well-known traders like Crypto Boy think Sealana might be the next 100x meme coin.
In a similar vein, Base Dawgz, another meme coin, is highly sought after given the excitement surrounding Base meme coins during this bull run. For example, throughout the last month, Brett, the most popular meme token on Base, has increased by nearly 400%.
A few days into its presale, DAWGZ has already raised about $800k, largely due to its unique share-to-earn feature and multi-chain status.
Like Sealana, experts like ClayBro have high hopes for Base Dawgz.
SOURCE : CRYPTODAILY CRYPTOMANTR