It is observed that the crypto market has not recovered since the disappointing movement at the end of last week. Market movements tended to be sideways or flat due to investors still waiting for the latest macroeconomic data momentum to be released this week, namely January US inflation data.
The Tokocrypto research team, in a daily analysis received by Liputan6.com, Monday (13/2/2023) said that the crypto market experienced a decline after the conflict that occurred between Kraken and the US Securities and Exchange Commission (SEC) regarding the staking feature.
“Investors who are waiting for the moment to go short or long must hold back first, considering a number of things that have happened,” said the Tokocrypto research team. Earlier this week, news emerged that the SEC is planning to sue the Paxos company for violating investor protection laws in relation to Binance USD.
Paxos is the owner and issuer of BUSD, a US Dollar-backed stablecoin that has been around since the company entered into a partnership with Binance in September 2019. The series of news has left investors no doubt closely monitoring whether tough regulations are starting to creep further into the decentralized finance (DeFi) sector. This can be a big obstacle to a bull run crypto market.
The bearish sentiment continues to increase. This can be seen from the Bitcoin Fear and Greed Index which fell from level 50 to 48 with the Neutral category this Monday morning. Crypto market participants are still anxiously awaiting the impulsive movements of Bitcoin and altcoins.
Investors Await US Inflation Data
Apart from that, in the short term, this week investors are also looking forward to the Consumer Price Index (CPI) data, aka the United States (US) consumer price index, which was announced on Tuesday, February 14, 2023. Many analysts expect a 0.4 percent decrease in the CPI for January to 6.1 percent from 6.5 percent.
This inflation data will be used by the Fed to set interest rates. That way the chances that the Fed will raise interest rates by another 25 basis points at its meeting next month are wide open.
“It is hoped that if the US inflation rate decreases, Bitcoin will turn green again. This will stimulate the crypto market to rally to break through previous losses,” concluded the Tokocrypto research team.
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