Throughout last weekend the crypto market showed strong bullish signals, but then tended to weaken when it started entering the 3rd week of June 2023. What caused it?
Tokocrypto external trader, Fyqieh Fachrur said the crypto market rose at the end of last week due to a mix of technical and fundamental factors. From a technical perspective, a number of crypto assets have experienced an oversold bounce.
“In addition to the technical bounce, the growing speculation around the approval of the first Bitcoin ETF by BlackRock in the US is helping the crypto market bounce. BlackRock submitted an application to the US Securities and Exchange Commission (SEC) for a Bitcoin ETF on June 16. The crypto market has increased by 4.5 percent since the BlackRock application,” said Fachrur in a daily analysis, quoted on Tuesday (20/6/2023).
In addition, Binance US and the United States Securities and Exchange Commission (SEC) have reached an agreement to repatriate user funds to the United States (US). This makes market participants a little relieved, especially those in the US.
Market Less Excited Early Week
The market is less enthusiastic because earlier this week the US market was on holiday in celebration of Juneteenth on Monday, June 19 2023. This week most market participants will focus on the speeches of FOMC members.
“The spotlight will be on Thursday, June 22, 2023, as Fed Chair Jerome Powell testifies before Congress, providing a broad overview of the economy and monetary policy,” said Fyqieh.
When the Fed stopped raising interest rates for the first time since early 2022, they also updated their forecast for the Fed Funds rate later this year, raising it to 5.6 percent from 5.1 percent previously.
Powell also said high inflation was still a concern, and most Committee members saw further improvement this year as they should.
Crypto asset markets often react to a variety of factors, including monetary policy and statements from central banks. Federal Reserve announcements can affect the market as a whole, including the crypto asset market, and cause price volatility.
“Investors tend to analyze the potential impact of the announcement and take action based on their assessment,” concluded Fyqieh.
