Bitcoin price has once again dropped to $26,000, and it was already known that closing below $26,800 would result in this. What bothers investors is the extremely stable sideways movement of the markets. BTC has been stuck in a narrow range for weeks. This week, the focus will be on future data rather than the Fed Chairman, and it is now necessary for volatility to increase.
This week, the macro agenda will be extremely intense. It is likely that volatility will increase in the crypto currency markets because Bitcoin continues to find buyers at a critical threshold like $26,000.
A slight decline is expected in building permits and new home sales data for the US. If the improvement in housing inflation is taken into account, these figures may not affect the markets much. If the CB consumer confidence index supports the economic downturn, it may bring some relief. The emphasis on the strong relationship between the Fed’s economy and inflation has recently attracted attention.
Since the Fed Chairman will make an opening speech, it is not expected that he will give important messages about the current state of the economy. Naturally, we may not see an increase in volatility associated with this before the statements to be made by Cook and Powell.
Core PCE inflation is known unofficially as the inflation indicator preferred by the Federal Reserve and will be announced this week. A decrease in core PCE from 4.2% to 4.0% is expected on an annual basis.
Although the increase in fuel prices negatively affects the CPI, it is uncertain how long this will continue. The current situation in other items continues to be the focus of the Fed. If we see a surprising decrease here, it can be supportive for crypto currencies.
Kobeissi said the following about this week;
“The return of volatility is great news for traders. More Fed uncertainty has returned, and we are ready for it.”
On the other hand, it may be an overly optimistic estimate for bears to suddenly act due to the excessive decrease in volumes and the negativity in overall market sentiment. To see Bitcoin, which dropped to $26,000 with the sharp decline in Asian markets, come back, we may need a series of good news for a few weeks.