Crypto Market: Choppy Seas Ahead – U.S. CPI Data Could Decide the Course
• The cryptocurrency market is extremely volatile, making it difficult for investors to confidently invest in the long run.
• The current SEC stance on crypto has made the market even more uncertain and caused a midpoint between $25,000 and $17,600.
• U.S CPI data due out Tuesday may decide which direction the crypto market takes next.
Crypto Market Volatility
The current crypto market is characterized by violent ups and downs that can have many investors feeling uneasy about their investments in the long run. This ‘choppy seas’ environment is normal for cryptos as they search for strong foundations to bring about a new bull market.
The US Securities and Exchange Commission (SEC), led by Chairman Gary Gensler, is attempting to quench the enthusiasm of innovation brought about by cryptocurrency with recent moves such as shutting down staking operations on Kraken exchange. Such actions have caused an overall sense of uncertainty in the market, leaving bitcoin at a midpoint between $25,000 and $17,600.
U.S Inflation Data Impact
The upcoming release of U.S inflation data this Tuesday could be a major deciding factor in where the crypto markets go next – should it print higher than expected then it could lead to short-term stormy seas; however if it prints lower than expected then expect smoother sailing ahead with bitcoin and altcoins rising accordingly.
Despite these choppy waters, altcoins have seen consistent growth since January 2021 with a peak at $390 billion market cap before reaching its current level at around $351 billion – suggesting that some kind of correction was necessary during this period of fluctuation.