Investors look to PMI data for crypto market direction after CoinEdition
- Crypto prices have entered a horizontal channel characterized by volatility driven by macroeconomic factors.
- Last Friday, Bitcoin and Ethereum experienced sharp price drops, losing over 5%.
- Crypto prices will rise or fall depending on the outcome or general perception of events such as PMI.
The crypto market trend has been difficult to predict in recent weeks. After a classic rally at the beginning of the year, crypto prices have entered a horizontal channel characterized by volatility driven by macroeconomic factors. Events lined up for the coming week suggest that we may see more volatility and price action that will determine the market trend for March 2023.
The last week ended with a sharp decline in crypto prices. Last Friday, the two leading cryptocurrencies, Bitcoin and Ethereum, experienced sharp price drops. Both cryptos lost over 5% of their value during the trading day, changing the mood of the entire market.
Falling prices have pushed the crypto market towards critical support. Breaking below this region could lead to a more significant correction in the market.
Last week’s price decline ties into some events in the macro sector, including the SEC’s investigation into Binance and the financial crisis that rocked Silvergate. The crypto market is intertwined with the macro sector, which means that investors are now paying close attention to such macro events. Crypto prices will rise or fall depending on the outcome or general perception of such events.
In the new week, the US will release the Purchasing Managers’ Index (PMI) data. This data will reflect the health status of various industries, including the cryptocurrency market. A closer look at the PMI can reveal the level of institutional adoption of cryptocurrencies, the extent of innovation and development, and the prevailing regulatory status of participants in the sector.
Depending on the outcome of this data and how industry stakeholders interpret it, we could see a significant movement in crypto prices. The impact of the PMI can initiate a trend that will maintain the market direction for several weeks to come.
Other important events expected to affect the crypto market in the coming weeks include the Federal Reserve meeting scheduled for March 22 and the Bitcoin Difficulty Adjustment. It’s a bi-weekly event that helps maintain the network’s stability and security.
The post Investors Look Towards PMI Data for Crypto Market Direction appeared first on Coin Edition.
See the original at CoinEdition
Get the news you want
Read exciting news in the market with a personal feed of stocks you care about.
Get the app
