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4 key events happening this week that impact crypto prices

Crypto price

TL;DR Breakdown

  • China’s 2022 economic growth to 2.7 percent, relatively below the official target of around 5.5 percent.
  • As japan’s inflation is not high, an increase in interest rate might contract the demand.

The industry of cryptocurrency has developed to the extent where global events are directly or indirectly influencing crypto price, demand, volatility, and adoption. Like stocks and other commodity markets, the crypto market is also predicted considering several relevant factors. 

Economic growth, investments, regulations, and financial stability along with many other factors help to forecast future changes in the price of crypto. Every event holding crypto relevance somehow influences the crypto prices. From an investor’s point of view, global events possibly affecting crypto pricing are something to keep an eye on in order to assess the market more effectively.

China will announce economic data for 2022

After an uneven growth performance last year, China’s economy is estimated to recover in 2023. Economic slowdowns and outbreaks have been followed by uneven recoveries. Recently, an economic projection by the world bank states China’s 2022 economic growth to 2.7 percent, relatively below the official target of around 5.5 percent.

Post-pandemic regulations have previously stricken down the crypto movement in China. As China missed the growth target, this will indirectly affect the crypto market in a good way. China will implement strategies to recover the economic growth target which will result in increased spending. This might trigger the inflation in future but crypto prices will probably escalate in 2023. 

Japan will announce its interest rate decision

The interest rate is expected to be -0.10 percent by the Bank of Japan. As japan’s inflation is not high, an increase in interest rate might contract the demand, increase the corporate burden, and add to the government’s debt payment pressure. The official decision would be public by 18 January 2023.

Low-interest rate is mostly considered favorable and as far as crypto prices are concerned, they will go bullish enabling investors and traders to get more loan to invest in crypto. This will increase the demand and the overall price for cryptos will probably appreciate. 

Europe will announce the minutes of its December monetary policy meeting

The monetary policy meetings are usually held every six weeks. They involve a review of financial, economic, and monetary developments and policy options as well as a summary of the discussions and decisions. The accounts are generally published four weeks after the meetings and the next release is expected on 19 January 2023.

Europe has been a good hub for crypto global development and the monetary policy meeting announcement is going to be a crucial event in determining the future crypto success in the region. The impact on crypto prices will depend on the decisions of economic development. If a tight monetary policy strategy is adopted, it will not have a positive outcome for cryptocurrency. 

Several FOMC voters in the United States will deliver speeches

There are eight FOMC regularly scheduled meetings per year. The agenda of the meeting is to review economic and financial conditions. Identifying the appropriate stance of monetary policy, and reassessing the risks to its long-run goals of price stability and sustainable economic growth.

Though the nature of most of the cryptocurrency is volatile the impact of change in government regulation impacts crypto spending and price. If the meeting turns around to restricting spending, the crypto prices will have a negative impact and interest rates would be increased.

Conclusion 

Despite the fact that there are many other factors influencing crypto price, economic factors are the most important ones as the impact is global. This year seems to be favorable for crypto markets but it would be too early to final perspective. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Haseeb Shaheen

Haseeb Shaheen

As a Web Researcher and Internet Marketer, Haseeb Shaheen delivers relevant valuable content for audiences. He focuses on financial and crypto market analysis, as well as technology-related areas that help people change their lives.

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