• The March 22 meeting of the U.S. Federal Reserve (FOMC) is the most important of the year and could determine the trend for Bitcoin and crypto markets through 2023-2024.
• QCP Capital, a leading digital asset trading firm in Asia, believes that the dollar index (DXY) will remain as a key indicator for these markets.
• This week has been relatively quiet in terms of macro data releases, but China’s manufacturing purchasing managers’ index reaching 52.6 points has caused the bitcoin prices to rise due to its reopening narrative being reawakened.
QCP Capital’s Market Analysis on FOMC Meeting
QCP Capital, a leading digital asset trading firm in Asia based in Singapore, has released a new market analysis related to the current macroeconomic environment calling the next Federal Open Market Committee (FOMC) meeting of the U.S. Federal Reserve (Fed) on March 22nd as an extremely important event for setting trends for Bitcoin and Crypto Markets throughout 2023-2024.
ADP National Employment Report
This week has been relatively quiet in terms of major macro data releases with ADP National Employment report being one of them – a monthly report that reflects nonfarm private sector employment status in United States.
The Fed’s Speeches
More importantly though are what Fed officials have been letting slip during their speeches lately; consistently talking about a prolonged interest rate hike with some even commenting on difficulty achieving soft landing which makes March 22nd decision all more crucial.
Policy Path Chart
Market participants will be able to see where Fed sees terminal rate by 2023 & whether it plans cuts in 2024 through Policy Path Chart – an official tool published by Fed 4 times each year following FOMC meetings among 16 members at once.
DXY To Remain As Main Indicator For Bitcoin And Crypto
QCP believes DXY will continue to lead way for Bitcoin & crypto market as DXY’s weakness earlier this week was due to China’s manufacturing PMI reaching 52.6 points resulting into reawakening of China’s reopening narrative thus causing bitcoin prices to rise further