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Financial and crypto markets are still subject to a strong decline, while investors are waiting for inflation and fed decisions. Despite favorable regulatory progress, bitcoins and Ethereum, they have fallen in the hope of liberation, which certainly comes from other data on ICP and FOMC. But what will really be?
Krypto market and scholarship Vacillet!
Wall Street continues his bear race this Monday and recorded a clear correction. Indeed, the S&P 500 lost 2.6 %, Nasdaq-100 drops by 3.1 %and Dow Jones dropped by 2.2 %. This tension has the consequences in Asia, where the future of Nikkei 225 and the suspension suggests new losses. In this context, Bitcoin’s nervousness fell by 5.8 % to $ 76,838, while Ethereum plunged from $ 11.5 to $ 1,795.
While the crypto market is under pressure, Trump’s administration is preparing a executive order aimed at canceling banking restrictions stored under Biden. This initiative would try to cancel the “Chokepoint 2.0” operation, a controversial policy that would limit the access of crypto companies to banking services. The initiative, which was already announced last January Travis Hill.
The decree could also clarify the status of stablecoins and soften the Fed rules on the bank with digital assets. This turnover is part of the new pro-crito orientation of the White House after recent statements Trump to create a national bitcoin reserve.
ICP and FOMC: Challenges for Risk Assets
Investors are eagerly awaiting the publication of consumer price index (ICP) on Wednesday, March 12, 2025, which should show an increase of 0.3 % in February (compared to 0.5 % in January). Annual inflation is expected to be 2.9 %, which is slightly decrease compared to 3 % of January. Any ascending surprise could delay the decreases of rates provided by the Fed and weigh more on stock markets and crypto.
In addition, another meeting of FOMC on 18 and 19 March 2025 could have a devastating effect on Kryptos, especially bitcoins. As Ryan Lee, the main analyst Bitget explains:
During the FOMC meeting, the federal reserve system is likely to maintain its rates at 4.25 %-4.50 %, with a neutral tone carefully, although Hawkish may occur if the inflation is concerned. The price of cryptocurrencies, such as bitcoins, could stagnate or reduce compared to their current range of $ 83,000 to $ 76,000, especially if the result of Hawkish strengthens the dollar and yields, which puts pressure on risk assets.
As the capital of the market cryptization is still declining, the currency tightening of the flexible is therefore still worried about it. However, some analysts believe that the recent dollar decline, the strongest since the financial crisis in 2008, could stimulate markets in the coming months.
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The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.