- Bitcoin went up after a bad weekend and is now being traded for over $43,000. The value of all cryptocurrencies is $1. 7 trillion, and almost half of that comes from Bitcoin.
- The results come from the United States, with important reports on the ISM Non-Manufacturing PMI on Monday and the RCM/TIPP Economic Optimism Index on Tuesday.
- Information from Asia is going to have an impact on the cryptocurrency industry because China’s financial markets are struggling. This could also affect riskier assets such as Bitcoin.
Bitcoin is a digital currency that can change a lot in value. Many things can make its price go up and down. It’s important for investors and people who like Bitcoin to understand why its price goes up and down.
This week, different things are expected to affect the price of Bitcoin. This shows that Bitcoin’s price is easily affected by changes in the market and outside influences. Studying these factors helps us understand why Bitcoin is worth a certain amount and helps people deal with the constantly changing world of digital money.
Bitcoin is still affected by regular finance and big economic factors
Currently, the value of Bitcoin is $43,114. 86 It went up 0. 4% in the past hour and 0. 5% in the past day. The value of Bitcoin is 2. 0% higher than it was seven days ago. The total amount of Bitcoin bought and sold in the last day is $13,680,571,541.
The total value of all cryptocurrencies in the world is $1. 73 trillion It went up by 0. 66% in the last 24 hours and by 56. 69% in the last year. Bitcoin is worth $847 billion right now, which is 48. 82% of the total market value.
Stablecoins are worth $137 billion, which is about 7. 91% of the total value of all cryptocurrencies. Today, the Bitcoin Fear and Greed index is at 60.
The crypto market can change quickly, but both traditional and decentralized things can make it go up or down. This week, here’s what to watch for. The important ISM Non-Manufacturing PMI will come out on Monday and investors will be very interested in it.
An increase in service sector growth could make it less likely that the Fed will lower interest rates in March. The recent US Jobs Report and other economic signs show that there is a 38% chance that the Federal Reserve will lower interest rates in March. Investors need to study parts of PMI like prices and jobs.
On Tuesday, people will look at the RCM/TIPP Economic Optimism Index. An improvement in the economy might make people want to buy more US dollars.
On Thursday, people will be paying attention to how many people are working in the US. More people being out of work could make it more likely for the Federal Reserve to lower interest rates in March.
Apart from the numbers, investors should also listen to what FOMC members are saying in their speeches. Some officials from the Federal Reserve will give speeches this week. This includes Barkin on Wednesday and Thursday, Bostic on Monday, Bowman on Wednesday, and Mester on Tuesday. Opinions about the economy, prices going up, and the Fed’s interest rate policy would all have an impact.
Information about buying and selling things in Europe
Germany will release its trade data on Monday, which will affect the EUR/USD. A decrease in the amount of goods and services being sent to other countries would make it more likely that the economy will shrink in the first three months of the year. However, we need to think about the service sector PMIs for January later today. An increase in the initial PMI readings and the Italian PMI would make a difference.
The service industry, which makes up more than 60% of the Eurozone economy, is still the main cause of rising prices. In addition to the numbers, investors should also look at the costs and job-related parts.
On Tuesday, the focus will be on the orders for German industries, and on Wednesday, we will look at the data for industrial production. More decreases in orders and production would mean that there might be a recession in the first quarter.
Information from the market in Asia
On Monday, the services PMI statistics for January will affect how much people want to buy the Japanese yen. More than 60% of Japan’s economy comes from services like banking, retail, and transportation. An increase in service sector activity could make people think the Bank of Japan will stop using negative interest rates in the first half of 2024.
But, investors should focus on the amount of money that people spent in December. An increase in how much money people spend at home could cause prices to go up, making the Bank of Japan raise interest rates from zero.
In addition to looking at the numbers, investors should pay attention to what the BoJ says this week. Opinions would change if interest rates went from negative to positive.
The Caixin Services PMI data for January will come out on Monday, and investors will be keeping an eye on it. More than half of the Chinese economy comes from the service industry. An increase in business activity could make people want to invest in riskier things like stocks and make them more likely to trade Australian and New Zealand dollars.
However, investors also need to look at the inflation numbers that came out on Thursday. If the prices that companies charge for their goods don’t go down as much as people thought they would, and the prices that consumers pay for things go up more than people thought they would, then it would be good for investments that are a bit riskier. Producers change their prices based on how much people want to buy their products. Producer prices are a good way to tell how much prices for things will go up for consumers.
Warning: This is not trading advice.