Macro events might disrupt Bitcoin and cryptocurrency markets

The Bitcoin and Cryptocurrency Markets Could Be Shaken Up by Imminent Macroeconomic Events

This week, important macroeconomic data will be released, so a top analytics firm is warning crypto traders to be ready for wild price swings.

In a new Insights edition, Santiment says it expects a volatile week for crypto because the Federal Open Market Committee (FOMC) will announce its latest policy decision today at 2:00 p.m. Eastern Time.

Investors think that the Federal Reserve will raise interest rates by 50 basis points, which is less than the 0.75 percent increases made at the last four meetings. A reading that is higher than expected is usually bad news because it shows that the Fed wants to tighten monetary policy to fight inflation.

Santiment also tells traders to keep a close eye on the purchasing manager's index (PMI), an economic indicator that measures the health of the manufacturing and service sectors. The PMI will come out on Friday, December 16th.

Santiment says, "These events' outcomes will eventually decide whether the market is risk-on or risk-off."

The analytics firm also says that while crypto and the stock market have moved in the same direction for most of the year, this trend broke in November when FTX went down in a big way.

The analytics firm ends by saying that crypto investors have been nervous lately and that any bad news from the two key macro events could cause another sell-off.

"It's time to make a choice."