Attention to Next Week in Bitcoin and Cryptocurrencies!

Cryptocurrency market has been fluctuating for a while with the financial crises and news from the SEC front. While these developments do not stop, important events are expected to take place next week.

First of all, the cryptocurrency market closed Friday with a sharp decline. On the other hand, in addition to the SEC’s pressure on Binance and its investigation, the financial crisis in Silvergate shook the markets. These events soon bitcoin and lowered the Ethereum price by 5%. These dips have caused assets to approach key support levels and risk even greater declines very soon.

Moreover, there are a few critical macro events that will continue to put the same pressure on the crypto market next week as investors do not yet have enough confidence to buy from the bottom.

US PMI Data

The Purchasing Managers Index (PMI) data is an important economic indicator that can provide valuable information about the health of various industries, including the cryptocurrency market. S&P Global Asia Sector PMI and S&P Global Dubai PMI will be released on March 6 and 9, respectively.

PMI data can provide a graph of the health of the cryptocurrency market, including level of institutional adoption, innovation and development, and regulatory uncertainty. All in all, positive data will significantly increase the market’s bullish potential next week.

Federal Reserve Meeting

Although the Fed meeting will take place on March 22, the recent release of the minutes of the February 1 meeting by the US Federal Reserve may put bearish pressure on the market as it indicates further rate hikes. This could pose a significant challenge for the cryptocurrency market in the medium term.

The prospect of a further rise in interest rates in March could trigger a pullback for the crypto market, forcing many assets to drop significantly below the $19,000 level of Bitcoin price.

Bitcoin Hashrate Rate

Every fortnight Bitcoin goes through a process called “hashrate adjustment”, which helps maintain the stability and security of the network. This event could have an impact on the cryptocurrency market as changes in hashrate can affect mining difficulty and overall supply and demand for Bitcoin.

Since Bitcoin is not currently recording a drop, the mining difficulty rising from 43.05T to 44.01T on March 10 will trigger a bearish scenario for Bitcoin. This, in turn, will eventually reduce the profitability of miners and plunge multiple assets to their bottom.

As a result, next week will be important for the cryptocurrency market, as a few macro events have the potential to turn the tide. Investors should stay informed and alert about potential risks and opportunities in the market. As volatility is expected to continue, it’s more important than ever to have a well-diversified portfolio and a long-term investment strategy.

You can follow the current price action here.

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