The world’s largest digital coin is holding up relatively well, despite the latest salvos against the crypto world.
Although Bitcoin prices gave up the psychologically-important $28,000 handle to tumble one rung lower down to $27k, prices remain above recent cycle highs around the $25k region, at least for the time being.
Such price action speaks to the relative resilience of Bitcoin in the face of further crypto woes, though further developments bear close monitoring.
To be clear, these recent Bitcoin moves come amidst liquidity reportedly hitting a 10-month low, although interest in crypto derivatives, as evidenced in the number of Bitcoin options contracts, as reportedly surged to an all-time high!
Beyond the threats of hefty financial fines or settlements for these top exchanges, how these cases ultimately pan out could have a major sway over the future of the crypto industry, potentially choking access to users.
However, for the more immediate terms, here are some events that could move Bitcoin prices this week:
If these hearings unveil more failings in the world of traditional finance, that may boost the allure of alternative assets, potentially restoring Bitcoin back to the $28k mark.
If Boston Fed President Susan Collins and Richmond Fed President Thomas Barkin can convince markets of the Fed’s hawkish intentions, that may drag Bitcoin back to the $25k on fears of US interest rates moving even higher – a familiar foe for the crypto world.
Economists are predicting a fresh record high of 5.7% for the Eurozone’s core inflation in March.
Meanwhile, February’s US Core Deflator, the Fed’s preferred inflation gauge, is forecasted to remain stubbornly at 4.7% - more than two times above the Fed’s 2% target.
Higher-than-expected inflation prints on either side of the Atlantic might reinforce the notion that interest rates are bound to move higher, provided financial instability risks remain in check.
And such a narrative may send a risk-off shudder throughout the crypto world.
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