After flashing green for the last seven days, the cryptocurrency market has fallen prey to bears yet again. The bears seem to be having the upper hand since the start of 2022, primarily after May, owing to several adverse circumstances like the Terra (LUNA) collapse, multiple bankruptcies, and Federal Reserve’s rate hikes.
The global cryptocurrency market has plunged by 2.14% over the last 24hrs and is now positioned at $1.02 trillion.
The bad news hasn’t stopped. It’s now being reported that the Federal Reserve plans to increase interest rates by 0.75% in the upcoming FOMC meeting scheduled on July 26-27.
Meanwhile, ARK Investment firm’s former analyst and expert, Chris Burniske, expresses his opinion on the overall market performance just a day before the FOMC meeting.
The analyst took the Bitcoin and Ethereum weekly chart into consideration and claims that the market sentiment around the assets is still not positive.
Chris Burniske states via a tweet that the flagship currency has only hit the 200 weekly moving average but failed to surpass it. This brings the crypto market to a place of either retaliation or temporary failure.
The crypto enthusiast and strategist concluded his analysis by claiming that the present breakout is just a bubble; hence one should wait for confirmation before opening a position.
Trying Times Ahead- How will assets react?
It is also going to be interesting to see how the market will react after the Federal Reserve’s rate hike in the upcoming FOMC meeting amid increasing economic crises around the world.
Additionally, on July 28th, the US Labor market and unemployment statistics will be revealed along with the GDP reports. Finally, the week will end with a consumer sentiment report scheduled to be disclosed on July 29th.
Hence, it’s essential to pay close attention to the upcoming events and their effects on the crypto market.
Until the situation becomes clearer again, Coinpedia recommends that traders and investors proceed cautiously.
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Source: https://coinpedia.org/news/crucial-week-for-crypto-space-fomc-meeting-gdp-reports-and-more/