• Bitcoin (BTC) and Ethereum (ETH) prices have been holding above the $24,000 and $1,600 marks respectively.
• Investors are keeping a close eye on the upcoming Federal Open Market Committee (FOMC) meeting minutes which are set to be released this week.
• The release of these minutes could have an impact on the cryptocurrency market due to potential changes in US monetary policy.
Bitcoin and Ethereum Prices
Bitcoin (BTC) and Ethereum (ETH), the two biggest cryptocurrencies in the world, continue to hold above the $24,000 and $1,600 marks, respectively. However, they experienced a slight decline this morning, with Bitcoin falling from $25,000 to $24,000. The crypto market continues to fluctuate as investors await upcoming events with high anticipation.
Economic Data from US
Positive economic data coming out of the United States has strengthened the belief that the Federal Reserve will continue with its plan to tighten monetary policy for a longer period than previously expected. This has caused Asian shares to get off a subdued start as trading volume was dampened by a US holiday while traders remain cautious about making large investments before major events take place in upcoming weeks including Coinbase’s results and Hong Kong’s new VASP licensing scheme.
Impact of FOMC Meeting Minutes
The release of the Federal Open Market Committee (FOMC) minutes on Wednesday could have an impact on the price of Bitcoin as it sets monetary policy in the United States which can affect financial markets including cryptocurrency markets. In a recent speech at the Economic Club of Washington, Federal Reserve Chair Jerome Powell discussed disinflationary processes and expressed confidence in their ability to lower inflation rates; however he warned that sustained strong labor data could lead to higher terminal levels for Fed funds rates.
Coinbase Results & Hong Kong Scheme
Traders seem to be cautious about making large investments before Coinbase’s results are released or Hong Kong’s new VASP licensing scheme is implemented as both may cause significant movements in cryptocurrency markets over upcoming weeks.
In conclusion, investors should pay close attention to Wednesday’s FOMC meeting minutes as any hint of shift in US monetary policy may affect financial markets significantly including cryptocurrency markets. Furthermore investors should also keep an eye out for Coinbase’s results or Hong Kong’s new VASP licensing scheme which may also cause drastic movements over upcoming weeks.