crypto strategy

4 Key Events Happening This Week Impacting Crypto Prices | cryptopolitan

The cryptocurrency industry has grown as world events directly or indirectly influence the price, demand, volatility, and adoption of crypto. Like stocks and other commodity markets, the crypto market is also predicted by considering several relevant factors.

Economic growth, investments, regulation, and financial stability along with many other factors help predict future changes in the price of crypto. Every event with cryptographic relevance influences crypto prices in some way. From an investor’s perspective, global events that can affect crypto prices are something to watch out for in order to gauge the market more effectively.

China to announce economic data for 2022

After uneven growth last year, China’s economy is expected to recover in 2023. Economic downturns and booms have been followed by uneven recoveries. Recently, an economic projection from the World Bank indicates China’s economic growth in 2022 at 2.7%, relatively below the official target of around 5.5%.

Post-pandemic regulations have already wiped out the crypto movement in China. As China missed the growth target, this will indirectly affect the crypto market in a good way. China will implement strategies to regain the goal of economic growth which will result in increased spending. This could trigger inflation in the future, but crypto prices will likely rise in 2023.

Japan to announce interest rate decision

The interest rate should be -0.10% by the Bank of Japan. Since inflation in Japan is not high, an increase in the interest rate could contract demand, increase the burden on businesses and add to the pressure on debt payment. The official decision will be made public on January 18, 2023.

Low interest rates are generally seen as favorable and when it comes to crypto prices, they will turn bullish, allowing investors and traders to get more loans to invest in crypto. This will increase demand and the overall price of cryptos will likely appreciate.

Europe to publish minutes of its December monetary policy meeting

Monetary policy meetings are usually held every six weeks. They involve a review of financial, economic and monetary developments and policy options as well as a summary of discussions and decisions. Accounts are usually published four weeks after meetings and the next publication is expected on January 19, 2023.

Europe has been a good hub for global crypto development and the announcement of the monetary policy meeting will be a pivotal event in determining the future success of crypto in the region. The impact on crypto prices will depend on economic development decisions. If a strict monetary policy strategy is adopted, it will not have a positive outcome for the cryptocurrency.

Several FOMC voters in the United States will give speeches

There are eight regular FOMC meetings per year. The agenda for the meeting is to review economic and financial conditions. Identify the appropriate monetary policy stance and reassess the risks to its long-term objectives of price stability and sustainable economic growth.

Although the nature of most cryptocurrencies is volatile, the impact of changes in government regulations have an impact on cryptocurrency spending and prices. If the meeting comes down to restricting spending, crypto prices will have a negative impact and interest rates will rise.

Conclusion

Despite the fact that there are many other factors influencing the price of crypto, economic factors are the most important as the impact is global. This year seems to be favorable for the crypto markets but it would be too early for a definitive outlook.

#Key #Events #Happening #Week #Impacting #Crypto #Prices #cryptopolitan #crypto strategy

Related Articles

Back to top button