Amid the ongoing crypto market drop, many digital currencies have declined today, losing their recent gains. Meanwhile, Pioneer Cryptocurrency Bitcoin (BTC) saw a price dip to $66,700, along with Ethereum (ETH) at $3523, Solana (SOL) at $152, and Ripple (XRP) at $0.48.
Prominent crypto analyst Michael van de Pop believes today could be a big day for altcoins, possibly signaling a turnaround amidst several important economic events, including the upcoming Consumer Price Index (CPI) news, the Federal Open Market Committee (FOMC) meeting, and the Federal Reserve’s interest rate decision.
Historical Trends Offer Hope
According to van de Pop, the events happening today could have a big impact on the markets, especially the crypto sector. He notes that before major economic events like these, cryptocurrency prices often decrease.
He further points out that recent events such as Roaring Kitty’s event and GameStop’s correction last week did not positively affect price action.
Looking at past FOMC meetings, van de Pop highlights that after these meetings, both Bitcoin and Ethereum have experienced significant increases in value, providing optimism during tough times in the market.
Key Expectations for CPI Data
The key events of the day include the CPI release and the FOMC rate decision. The CPI data, which indicates changes in the price of goods and services, is closely monitored by the FOMC to gauge inflation levels and potential interest rate adjustments.
Van de Pop outlines market expectations for the CPI data,
- CPI Y/Y: 3.4% expected
- CPI M/M: 0.1% expected
- Core CPI Y/Y: 3.5% expected
- Core CPI M/M: 0.3% expected
Powell’s Speech Awaited
The impending FOMC rate decision, set for 20:00 CET, stands as a pivotal movement for the market. However, Van de Pop highlights the impact of Federal Reserve Chair Jerome Powell’s speech, which holds the potential to offer valuable insights into upcoming monetary policy decisions.
He predicted that a neutral stance from the FOMC could trigger positive market reactions, especially within the crypto sphere.
Potential for Altcoin Market Rebound
Despite the potential for market volatility, van de Pop advises caution and suggests monitoring the price action of gold, the US dollar, and treasury yields for indications of market sentiment.
As the day unfolds, all eyes will be on the CPI data release and the subsequent FOMC meeting, poised to shape the trajectory of the crypto market in the days to come.
