Global Events That Will Impact Crypto This Week

The crypto market has experienced a splendid recovery, beginning the year with positive sentiment among traders. A larger market rally continued over the month as the Bitcoin price rebounded by more than 40% in January to hit a peak of $23,861 on January 29.

While investors were excited about the uptrend, experienced traders were expecting a downturn as the crypto market enters a critical week with many global events that may have an impact on its uptrend. A wider market-wide sale has been seen today, with the price of Bitcoin declining by more than 2% in a matter of hours.

Also ReadWhy does the crypto market collapse now, Bull Run Over?

Key Events To Watch This Week

1. Increase in interest rates. From the Federal Reserve in the States.

The U.S. Federal Reserve will announce its interest rate hike decision during the FOMC meeting on Wednesday. The market is expecting the Federal Reserve to reduce interest rate hikes by 25 basis points. However, the possibility of raising the rate by 50 basis points is still under consideration.

Treasury Secretary Janet Yellen and Tesla CEO Elon Musk have warned that the U.S. economy is at risk of a severe recession. Despite the slowdown in inflation and solid employment data, Yellen believes that high interest rates pose an increased risk to the recession.

According to the CME FedWatch Tool, there’s a 99.9% probability of a 25 bps rate hike by the U.S. Federal Reserve. The decision on rate increases will be followed by a speech by Federal President Jerome Powell describing a firm and accommodative approach.

2. Increase in the interest rates of the European Central Bank and the Bank of England.

It is expected that the European Central Bank will raise interest rates by 50 basis points over the next two meetings in February and March. Christine Lagarde, President of the ECB, says it is necessary to further tighten monetary policy and raise interest rates in order to lower inflation.

The Bank of England should announce a rate increase of 50 basis points on Thursday, one hour before the ECB's decision.

3. Technology Giants Quarterly Results.

The crypto market has a correlation with the United States equity market, with Nasdaq 100 having a strong correlation with the Bitcoin price. With technology giants like meta, apple, google, and Microsoft announcing their quarterly earnings this week, bitcoin price is likely to be impacted.

The tech giants are also associated with the crypto market with their technological developments related to metaverse, and blockchain.

4. Information on non-agricultural earnings and unemployment in the United States.

The United States Bureau of Labor Statistics will publish data on non-agricultural wages and unemployment in January. Non-agricultural payroll information is estimated at 185,000. U.S. economic growth created 223,000 jobs in December 2022.

In addition, there is an estimated unemployment rate of 3.6 per cent. US unemployment fell to 3.5% in Dec 2022.

Also ReadJanet Yellen, Elon Musk Warns Severe Recession, Will Crypto Crash Again?