Another important period is approaching for the stock markets and BTC. In addition to the situation in Ukraine, the mood of BTC traders may be affected by two important March data.
This is a publication US Consumer Price Index (CPI) whose publication is scheduled for Thursday, March 10, 2022, followed by a summary of the March meeting of US central bank officials FED (15-16.3.), which takes place on March 16, next Wednesday.
Already this week on Thursday we will find out the results of the development of consumer prices in the USA for February 2022. January figures did not turn out well at all and inflation in the USA reached the highest numbers in the last 40 years with a year-on-year growth of 7.5%. So the February numbers will tell a lot about the increase in Fed interest rates, which will be decided next week.
In short, if inflation were to fall at a rate in February, there is a chance that the Fed will not raise rates, or at least stick to the planned 0.25% rate hike scenario. However, if inflation numbers were even worse than in January, the Fed would be put under even more pressure to raise rates by as much as 0.50%.
To all this must be added a new variable in the form of the war in Ukraine, which has a broad impact on rising energy and agricultural commodity prices. The Fed thus faces the difficult task of correctly deciding to what extent to raise (or not raise) rates so that it achieves the primary goal of slowing inflation, but at the same time does not jeopardize already threatened economic growth and put the economy into recession, which is the biggest scarecrow for all. .
In conjunction with BTC and the stock markets, a 0.25% rate hike is expected and should not play such a crucial role on BTC. If the Fed does not raise rates, this could be a positive signal for BTC. On the contrary, an increase in rates of more than 0.25% could confuse even more the mood of risky investors.
Crypto Fear over the Greed Index indicating the current mood of BTC investors is now at 23 points out of 100 due to a further weakening of the BTC price in previous days. On March 1, 2022, when BTC strengthened sharply by 14%, was at 51 points in the “neutral mood” zone.