For this wild week in crypto, we saw a strong tie between the traditional financial calendar and shifts in the crypto market.
With institutional investors now leading, here were the key events in our global recap.
1. Big Expectations From Jerome Powell
As head of the Federal Reserve, Chairman, Jerome Powell plays a powerful role in announcing the fall or rise of US interest rates. Surprisingly, crypto traders now look at Jerome in order to get an idea of how he’ll influence the market.
Investors await his news releases.
Even the biggest research firms in the market are taking notice.
At K33 Research, analysts suggest that Bitcoin’s recent dip to $66,000 was related to market expectations tied to the Fed’s late interest-rate policy. It all makes complete sense.
The crypto market, in anticipation of Wednesday’s news, saw a total liquidation of $250 million prior. The money that left was likely moved as investors attempted to hedge their coming risks.
As it turns out, 20 of the top-crypto assets in the market traded well into the red on Wednesday.
The good news is that the Fed will be staying course and adjusting rates without surprises. This means that investors can plan with a bit more security, leading to a potentially stable market.
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2. The Bitcoin-ETF Influx, a Global Recap
Even with news pending on the Fed’s stance on overnight rates, the ETF market saw new money enter but in a strong push. At a fresh sum of $886 million, Bitcoin ETFs rallied with tremendous confidence just a week before the Federal Reserve’s big announcement.
The “influx” is now being aligned to the market movements we’ve seen in altcoins.
For those who haven’t seen this correlation before, it’s expected that when Bitcoin investors are taking home profits, the altcoin market gets diversified. Every win investors make from Bitcoin follows a noticeable trend, which is in seeing Bitcoin wins spread out into altcoins.
The catch here is that, based on historic-price data, Bitcoin must first take a dip. We saw just that this past Wednesday as the Federal Reserve prepared its announcement.
3. Investors Going Long On the US Jobs Report
Financial data is certainly pushing the market this week, and on Friday the 13th of 2024, the US jobs report will be unveiled. The anticipation is building up tension in the market. Though Bitcoin is still sitting around $66,000, investors might not move again until after the jobs report.
Now just a few years ago, this data meant nothing to the crypto market.
Traditional financial news is now speeding and slowing the actions of crypto traders.
Seeing this level of correlation in the market is historic by anyone’s means, and it’s no surprise, considering how active institutional investors have been in recent months.
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