The cryptocurrency market is currently in a delicate phase. Investors are closely watching macroeconomic data for possible signs of a market bottom. Nansen Research says that this week, which they have named “Liberation Week,” could give us important information about how the prices of Bitcoin and other cryptocurrencies will move. With critical economic data, policy announcements, and Federal Reserve signals coming up soon, market players are looking for any signs of stability in a world that is still very unstable.
Understanding macroeconomic factors
Aurelie Barthere, a senior researcher at Nansen, talked about the primary macroeconomic factors that affect how people feel about the market. These things are on investors’ minds this week:
- Federal Reserve policy: It is very important to be clear about possible interest rate cuts. According to Fed Chair Jerome Powell’s comments on Friday, there are likely to be three rate cuts this year.
- Tariffs and US economic growth: The news of the 25% tariff on cars and worries about trade moves between China, Japan, and the Eurozone could affect risk assets. But signs of good talks could make the market less tense.
- Job and manufacturing data: In March, non-farm payrolls will likely be between 139,000 and 191,000, and the jobless rate will be 4.3%. Strong employment statistics would boost investor confidence despite fears of a recession.
Fragile crypto market sentiment
Even though there are hopes for a market bottom, crypto is still under a lot of stress. Bitcoin hasn’t been able to break above its 200-day moving average, and altcoins are dropping sharply, making dead crosses, a bearish technical sign. The S&P 500 has fallen 11%, which shows that people are generally less willing to take risks. If the Fed becomes “dovish,” markets may recover temporarily.
Analysts at Nansen think that if Powell is ready to put concerns about inflation aside and focus on economic growth, the market could see this as a green light for risky assets like Bitcoin and stocks.
Conclusion
The crypto market could make big moves this week. Investors are very alert because of important economic data, Federal Reserve signs, and changes in tariffs. Even though the market’s mood is still fragile, any good news could lead to a relief rebound.
