As Crypto Market faces increased volatility early on Wednesday, all eyes of the looming speech and retail sales data released today for March are now in every eye.
Powell will speak at Chicago’s economic club on Wednesday about the outlook for the US economy. Clues about interest rate changes, inflation control, or economic growth can affect all financial markets, including cryptocurrencies.
If the Fed chair hits the hawks tone, risky assets such as cryptocurrencies could face short-term sales pressure when they show long-distance interest rates. Meanwhile, if Powell takes a breaking tone, Bitcoin and other crypto assets could recover amid a low interest rate hopes.
Prior to Powell’s speech and economic data decline, traders endure volatility and perhaps opportunities. Whether it’s a gathering or a retreat, we’ll be testing the appetite for market risk for the next few days.
What’s next?
Bitcoin and other major cryptocurrencies fell over as profits continued following Tuesday’s increase. Bitcoin plunged more than 3%, while XRP, Dogecoin, Cardano and ChainLink plunged more than 4%. Pi, Celestia, Bonk, Jasmy and Flare have dropped by around 10%.
Investors have digested retail sales data for March. This is an important report showing consumers willing to spend during periods of increasing economic and inflation uncertainty. Dow Jones economists expect to see an increase of 1.2% from the previous month, up from 0.2% in February.
Investors will also focus on industrial production data and monitor a speech by Federal Reserve Chair Jerome Powell later that day.
According to Coinbase Institutional, the cryptocurrency market may be in a bear period where serious losses and stagnation are expected. A slide of bitcoin under a simple moving average of 200 days will presume the winter of the previous crypto.
