A leading analytics firm is issuing an alert to crypto traders to brace for wild price swings as key macro data are due for release this week.
In a new Insights edition, Santiment says it is expecting a volatile week ahead for crypto as the Federal Open Market Committee (FOMC) is scheduled to announce its latest policy decision today at 2:00 pm Eastern Time.
Investors expect the Federal Reserve to hike interest rates by 50 basis points, a deceleration from the 0.75% increases imposed over the previous four meetings. A higher-than-expected print is traditionally bearish as it signals that the Fed is intent on tightening monetary policies to combat inflation.
Santiment also tells traders to keep a close watch on the purchasing manager’s index (PMI), an economic indicator that gauges the health of the manufacturing and service sectors. The PMI is slated for release on Friday, December 16th.
Says Santiment,
“The decisions from these events will eventually guide the market to be risk-on or risk-off.”Â
The analytics firm also says that while crypto has moved in tandem with the stock market for the most part of the year, the correlation snapped in November amid the high-profile implosion of FTX.
The analytics firm concludes by saying that crypto investors have been jittery as of late and any negative surprises from the two key macro events could trigger another sell-off event.
“Decision time is coming.”Â
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Salamahin/Angelatriks
