FED’s decision on rate hike could impact crypto prices this week | CoinPanel Weekly Overview
CoinPanelers! We recently introduced a new feature on our platform- Sell Full Trade -which allows traders to short crypto, in addition to going long. This new function will enable investors to profit even when the market is crashing.
Read more about how you can take advantage of a crypto bear market in our latest blog.
Let’s take a look at some of the past week’s major events.
- Ethereum’s migration to proof-of-stake is progressing steadily as over 10 million Ether, equivalent to approximately $26 billion has been staked on the blockchain since November 4 last year.
- Chainlink whale addresses-holders of 10,000 to 10 million LINK- have accumulated 17.1 million tokens in less than a month, an encouraging sign for the altcoin.
- US President Joe Biden issued an executive order requiring government agencies to explore the issuance of a central bank digital currency and to consolidate a national framework for cryptocurrencies.
- The European Commission stated that digital assets will fall under additional sanctions targeted against Russia and Belarus amid the military conflict in Ukraine.
- Elon Musk stated that he does not have any plans to sell his crypto as inflation rises.
- The Federal Reserve in the United States is expected to increase the key rate in the country and could greatly affect both the equity and cryptocurrency markets.
Could a correction be in store?
Interest in inflation and FED rate hike are currently the two main narratives in the digital asset industry this week as investors are expecting increased volatility when the decision is announced.
The FED previously announced that citizens should expect a rate hike in March. When the announcement was made, crypto prices and equities markets also suffered a correction.
The Bitcoin Illiquid Supply Shock Ratio has increased significantly, suggesting that investors have not been spending much of their BTC.
The current illiquid supply of Bitcoin is 3.2 times larger than the liquid supply and the highly liquid supply combined.
The crypto market appears to be giving mixed signals on the upcoming trends, therefore it is essential to have stop-losses set in place as increased volatility could be on the horizon.
With the new Sell Full Trade feature, CoinPanel traders can now take advantage and profit from when the market moves up AND when the market moves down.