Cryptocurrencies: A Week of Volatility Ahead
The cryptocurrency market started the week on a subdued note, with most coins continuing to trade in a bear market. However, two major economic events are set to unfold this week, which could potentially cause significant volatility in the market.
President Trump’s Reciprocal Tariffs
On Monday, President Donald Trump announced that he would be imposing tariffs on $200 billion worth of Chinese imports. China, in response, announced that it would be imposing retaliatory tariffs on $60 billion worth of US goods. These reciprocal tariffs are expected to take effect on July 6, 2018.
The cryptocurrency market has historically shown a strong correlation with global stock markets. Therefore, the uncertainty surrounding the trade war between the US and China could potentially lead to increased volatility in the cryptocurrency market.
US Nonfarm Payroll Data
Another major economic event scheduled for this week is the release of the US nonfarm payroll data for June 2018. This data is considered to be one of the most important indicators of the US economy’s health. A strong jobs report could potentially lead to an increase in investor confidence, which could in turn lead to a rise in the value of cryptocurrencies.
On the other hand, a weak jobs report could potentially lead to a sell-off in the market, as investors may become fearful of a slowing economy. Therefore, the nonfarm payroll data could potentially be a significant catalyst for price movements in the cryptocurrency market.
Impact on Individuals
For individual investors, the volatility in the cryptocurrency market could potentially present both opportunities and risks. Those who are bullish on the long-term potential of cryptocurrencies may choose to use any price dips as an opportunity to buy more coins at a lower price. Alternatively, those who are risk-averse may choose to wait on the sidelines until the market becomes less volatile.
Impact on the World
The volatility in the cryptocurrency market could potentially have far-reaching implications for the global economy. For instance, it could potentially lead to increased volatility in other asset classes, such as stocks and bonds. Additionally, it could potentially lead to increased regulatory scrutiny of cryptocurrencies, as governments seek to protect their citizens from potential risks.
- Increased volatility in other asset classes
- Increased regulatory scrutiny of cryptocurrencies
Conclusion
In conclusion, the cryptocurrency market is expected to be volatile this week, with the imposition of reciprocal tariffs between the US and China, and the release of the US nonfarm payroll data, potentially serving as significant catalysts for price movements. Individual investors should carefully consider their risk tolerance and investment objectives before making any decisions in the market.
At the same time, the potential implications of this volatility for the global economy are significant, and it will be important for governments and regulatory bodies to closely monitor the situation and take appropriate measures to mitigate any potential risks.
Stay tuned for further updates on the cryptocurrency market.
