Crypto Traders Predict Price Volatility For This Week’s FOMC, CPI Data
Crypto traders are gearing up for massive volatility, with several key macroeconomic events taking place this week.
Spearheading the week is the Consumer Price Index on Wednesday, followed by the all-important Federal Open Market Committee (FOMC) meeting on the same day. Perhaps Fed Chair Jerome Powell’s speech post-FOMC could be even more important than the central bank’s interest rate decision itself.
On Thursday, the Producer Price Index and jobless claims could further fuel the market volatility.
Next week Wednesday & Thursday are some massively economic data packed days.Wednesday has CPI & FOMC.Thursday has PPI & Jobless claims.Expect a lot of volatility around those days and possibly some derisking the days prior.Don’t get chopped up meanwhile 🙂 pic.twitter.com/Ue92wNDliM
— Daan Crypto Trades (@DaanCrypto) June 6, 2024
Experts are advising traders to stay away from leverage in the coming days. Several smart-money traders are choosing to invest in crypto presales, considering they are not impacted by short-term volatility.
The Week Which Could Kickstart The Crypto Bull Market
The Bitcoin price steadily climbed up to $71,800 last week – spurred by the strong inflows recorded by spot BTC ETFs – before witnessing a marginal pullback.
The strong correlation between Bitcoin and global liquidity cannot be overstated. The graph below – depicting the BTC price divided by the M2 Money Supply – shows how reactive Bitcoin is to macroeconomic factors.
The M2 money supply has started to soar and with it, the institutional investment in Bitcoin has started to tick up. CryptoQuant recently reported that large investors are adding $1 billion in BTC every day, resembling the behaviour that preceded Bitcoin’s move from $10k to $69k in 2020.
#Bitcoin: The whales’ appetite for buying has returned strongly“They are now returning with strong buying power once again, which indicates that the current prices are suitable for buying and accumulating.” – By @abramchart Full post 👇https://t.co/lYGUHk72Hf
— CryptoQuant.com (@cryptoquant_com) June 7, 2024
Therefore, the stage is set for another crypto bull rally and a positive macroeconomic outlook this week could kickstart just that.
Oil prices indicate that the CPI inflation would be in line with the market consensus.
Oil is telling you that there’s lower inflation numbers to come shorter-term. This + today’s employment data, point to easier conditions for risk assets over the coming quarter.If you navigated the past two months conserving capital, well done… it should get easier from here. pic.twitter.com/KJRUaZPUOL
— ted (@tedtalksmacro) May 4, 2024
Similarly, the CME FedWatch tool shows a strong likelihood of the US Federal Reserve continuing to keep its benchmark interest rates at 525 – 550 bps.
The key event therefore becomes Fed Chair Jerome Powell’s speech post-FOMC. It is important to remember that it was Powell’s dovish speech that kickstarted a recovery in the equities market at the start of May.
Another dovish speech could be a clear signal to the markets that quantitative easing is on the horizon. Notably, both the Bank of Canada and the European Central Bank have already started to cut interest rates last week.
ICOs In Demand Despite Crypto Price Volatility
Crypto presales are in high demand, considering they are not exposed to short-term market volatility.
For instance, the Sealana meme coin has caught the attention of crypto traders, having already raised over $3 million in its ICO. With its presale ending on June 25th, there is a considerable possibility that $SEAL will launch in the midst of a major bull run.
As such, popular traders such as Crypto Boy believe that Sealana could potentially be the next 100x meme coin.
Similarly, another meme coin Base Dawgz is in high demand, considering the hype surrounding Base meme coins during this bull run. For instance, Brett – Base’s top meme token – has rallied close to 400% over the past month.
DAWGZ has already raised close to $800k in its presale in the first few days, thanks to its multi-chain status and the innovative share-to-earn utility.
Similar to Sealana, experts such as ClayBro are bullish on Base Dawgz.
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