As investors gear up for a week of potential market volatility, analysts are closely monitoring key macroeconomic events that could impact various asset classes. The release of the Consumer Price Index (CPI) and a speech by former Federal Reserve Chair Janet Yellen are expected to influence market movements. The recent downturn in the crypto market, triggered by stronger-than-expected U.S. jobs data, has also contributed to increased market uncertainty. Meme stocks like GameStop have seen declines, causing ripple effects on alternative tokens and meme coins.
Bitcoin (BTC) and ether (ETH) have remained relatively stable over the weekend, with open interest and trading volumes experiencing a dip after a $400 million leverage flush out. However, analysts anticipate that market volatility will pick up in the coming week, driven by upcoming macroeconomic catalysts. The Federal Open Market Committee (FOMC) meeting on Thursday and Janet Yellen’s speech on Friday are key events that could impact market dynamics.
The record leverage build-up on bitcoin futures came back to haunt bulls last Friday as the market took a hit following the release of strong non-farm payrolls figures. The U.S. economy added 275,000 jobs, surpassing expectations of 185,000, leading to a sharp decline in BTC from $71,000 to $69,000. The downturn in meme stock GameStop also played a role in dragging down riskier assets like alternative tokens and meme coins, with popular memes like dogecoin (DOGE) and shiba inu (SHIB) seeing losses of up to 10%.
Following the recent market turbulence, open interest across various tokens dropped significantly from $99 billion to $60 billion. Trading volumes also fell by 10% in the past 24 hours, indicating a reduction in trading activity. Bitcoin was trading at around $69,400 on Monday, while ether hovered around $3,660. Other tokens like Solana (SOL) and xrp (XRP) experienced slight losses, while BNB Chain’s BNB tokens dipped by 5.5% after reaching a record high of over $710 last week.
Despite the overall market uncertainty, Cardano’s (ADA) price saw a slight increase on Monday, following news of a technical event that could impact the network and its token. With investors bracing for heightened market volatility in the week ahead, it remains to be seen how upcoming macroeconomic events and market dynamics will shape the trading landscape. Analysts continue to monitor the situation closely and provide insights to navigate the turbulent waters of the financial markets.
Discussion about this post