Bitcoin is subject to the influence of key economic events that may shift investor sentiment and market dynamics this week.
Jerome Powell's Upcoming Speeches
Jerome Powell, along with other Federal Reserve members, is scheduled for multiple speeches throughout the week. These speeches are crucial as they might provide insights into future monetary policy, especially in the context of rising inflation pressures.
Long-term Holder Sentiment
In recent weeks, long-term Bitcoin holders have shown increased confidence, stepping up their accumulation of BTC. Analysis by Charles Edwards of Capriole Investments notes a 4.2% increase in long-term holder supply, signaling a potential bullish trend. Edwards mentioned: "Bitcoin long-term holders have stepped up accumulation, signaling high conviction despite short-term volatility."
Impact of Economic Indicators
Economic indicators like PMIs and Fed policies have historically led to high volatility and price movements in the crypto markets. This pattern persists as traders brace for the week's US macroeconomic releases, which include critical data on consumer sentiment and inflation expectations.
In light of the upcoming economic events, Bitcoin's price may experience significant volatility, underscoring its role as a macroeconomic hedge.
