Crypto Market Outlook: Macro Indicators Recover; Market Steady Despite Fed’s Hike
The crypto market has shown resilience in the previous week despite notable events such as Federal Reserve’s rate hike and Sam Bankman-Fried’s arrest. The market capitalization witnessed a marginal fall from 12 December at $859 to Friday’s $852 billion.
Meanwhile, Coinmarketcap shows Bitcoin price at $17,505, up 1.5%, whereas Ethereum (ETH) remained flat at around $1,277. Bitcoin climbed to hit a 5-week peak of $18,400 on 15 December. Though the week started with sideways actions within the marketplace, there’s an impressive run following rate hikes and the CPI data towards the weekend.
Though these developments print a lucrative atmosphere for upside market movements, a minor plunge emerged after the rate hikes. That was due to the higher-than-anticipated terminal rate of over 5.1 for 2023. That’s according to Kunji crypto management firm’s founder Anurag Dixit.
Market-Moving Events
Authorities finally arrested the troubled SBF on 12 December in the Bahamas. The United States SEC (Securities & Exchange Commission) and CFTC (Commodity Futures Trading Commission) charged the former FTX CEO with fraud & funds misappropriation.
More clarity about this case is yet to surface. Nonetheless, crypto company Genesis displays a murky future. This week, the crypto market capitalization hit $885B before the Federal revealed a 50 basis points hike and retained a hawkish stance on inflation. Nevertheless, the latest rate increase was lower than the 75bps rate increase.
CoinSwitch’s Parth Chaturvedi commented on the market moves, stating that BTC and ETH briefly moved beyond their crucial marks of $18K and $1.3K, respectively. The primary reason behind the ongoing market buoyance is the enhanced macro conditions. For instance, the United States’ inflation rose below anticipation (7.1%). And the slowed Fed hike to 50 basis points.
Cryptocurrency Prices – Next Week Prediction
Bitcoin has its current support and resistance at $17.1K and $17,550, respectively. The leading crypto should climb past $18K to erase the bear influence. Failure to do that can trigger downward actions in the upcoming week.
Also, an ETH upside past $1,350 would draw buyers to support further increments. Meanwhile, time will confirm. Some notable market players like Goldman Sachs view the current market downturn as an investment opportunity. That means they have hope for the sector’s long-term performance.
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