Why Crypto Prices Are Becalmed Before the Coming Storm
Although crypto assets are consolidating this week, the crypto space has had a very long month - coin prices have been finicky, with September beginning on a shaky note.
As more investors continue to observe, cautious optimism appears to be taking hold. Nonetheless, this week is expected to be a watershed moment in the crypto space on multiple fronts.
Factors inside and outside the market are expected to play a role in determining the market's performance. This week could be pivotal to determining the market's direction in the short term.
As we enter Tuesday, the crypto market has maintained the gains made over the weekend. Bitcoin is currently trading at $22,300, close to the one-month high of $22,500 set earlier this week.
So far, the BTC/USD pair has maintained the gains made over the weekend, with a falling US dollar acting as a trigger for risky assets and hedges as the week began. The traditional stock market, like crypto, saw a small boost.
Both the NASDAQ Composite Index and the S&P 500 were up 1.1% after the market opened on Monday, with S&P continuing its strong rally after breaking through its 50-day exponential moving average (EMA) on Friday.
However, the US dollar index (DXY), which tracks the dollar's performance against several other major currencies, was down 0.7% on the day.
The current market condition appears stable as traders await US Consumer Price Index data (CPI). The metric, a key indicator of inflation, has been one of the most significant predictors of market gains or losses this year, particularly with global economies grappling with inflation and the aftermath of spending sprees to combat the coronavirus pandemic.
According to City Index, the August CPI figures, which will be released today,
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