Market Opening: What are the factors impacting the crypto market this week?

The figure of the week: 7.9% US consumer price inflation. It marks a 40-year high.

The hot-running inflation and disappointing diplomatic negotiations between Russia and the Ukraine are dominating not only the broad crypto market, but traditional markets as well.

BTC$ has been in a broad trading range between 34k and 45k since late January. Many investors seem to be waiting on the sidelines until the interest rate situation as well as the geopolitical issues clear up. A breakout to one side or the other of this trading range will most likely bring some momentum with it.

Terra (LUNA) seems to have become everyone’s darling. Within the last 30 days, Luna has risen by 95%, in a generally weak market, and yesterday saw a new all-time high of USD 108.75. The adoption of the TerraUSD stablecoin and the ever-growing DEFI ecosystem seem to have fundamentally increased the demand for the native token.

In order not to be able to circumvent the sanctions against Russia, the market expected stronger regulations in the short term. So far, however, these have turned out to be milder than expected.

Next week, the driving news will be the de-escalation or escalation of the Russia-Ukraine conflict. Next Wednesday will also be the FOMC interest rate decision, which could create clarity in the interest rate outlook.

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