Crypto Market Outlook for Next Week: These Key Events Will Determine March’s Trend
The cryptocurrency market has been making headlines due to multiple financial crises and the SEC’s scrutiny that runs through the realm of unpredictable fluctuations. It looks like the coming week will be no exception as the market is likely to remain volatile ahead of major macro events. With several key macro events on the horizon, investors and analysts are closely watching the market’s next move. From the Federal Reserve’s meeting to Bitcoin’s difficulty adjustment, each of these events has the potential to affect the cryptocurrency industry’s trends and direction in the coming week.
What can market traders expect next week?
This week, the crypto market faced intense volatility with a sharp decline on Friday. The cryptocurrency market is always filled with surprises, and this week was no different. Several events rocked the market, including the SEC’s investigation into Binance and the financial crisis at cryptobank Silvergate. Following the FUD situation, leading assets such as Bitcoin and Ethereum fell over 5% and are now aiming to break below their crucial support levels, which could soon lead to another correction in the market.
Moreover, there are several critical macro events that are going to keep the same pressure on the crypto market next week as investors have not yet gained enough confidence to buy in the dip.
PMI data
Purchasing Managers’ Index (PMI) data is an important economic indicator that can provide valuable insight into the health of various industries, including the cryptocurrency market. The S&P Global Asia Sector PMI and the S&P Global Dubai PMI are scheduled for March 6 and 9 respectively.
PMI data can provide a graph of the health of the cryptocurrency market, including the level of institutional adoption, innovation and development, and regulatory uncertainty. As a result, positive data will significantly increase the market’s bullish potential next week.
Federal Reserve meeting
Although the Fed meeting is set for March 22, it could build bearish pressure in the market as the US central bank’s recent release of the minutes of its February 1 meeting suggests that more rate hikes are on the horizon. This could pose a significant challenge to the cryptocurrency market in the medium term.
More interest rate hikes in March will create a downturn for the crypto market, and Bitcoin could plunge below the $19K level, forcing more assets to drop significantly.
Bitcoin difficulty adjustment
The Bitcoin network undergoes a process called “hashrate adjustment” every two weeks, which helps maintain the network’s stability and security. This event could have an impact on the cryptocurrency market, as changes in the hashrate could affect the difficulty of mining and the overall supply and demand of Bitcoin.
As Bitcoin is currently experiencing a fall, the increase in mining difficulty from 43.05T to 44.01T on March 10th will create a bearish scenario for Bitcoin, which will ultimately reduce miners’ profitability and sink more assets to the bottom levels.
Conclusion
The next week will be important for the cryptocurrency market, as several macro events are set to take place. As a result, investors should stay informed and be alert to potential risks and opportunities in the market. With volatility expected to continue, it is more important than ever to have a well-diversified portfolio and a long-term investment strategy.
