, 2023-01-03 12:57:08,
After an awful year in top cryptos to watch, it’s only natural that many investors look forward to 2023 for potential upside opportunities. Nevertheless, it’s vital that market participants don’t lose their focus. Primarily, the Federal Reserve likely represents the key arbiter of the blockchain ecosystem’s trajectory. As the juxtaposition between the benchmark digital asset and the M2 money stock demonstrates, the two metrics share a strong direct correlation.
Stated differently, as money supply rises (inflation), the circumstances places upward pressure on cryptos (and other commodities). And as money supply declines (deflation), the subsequent framework imposes downward pressure on virtual currencies. While blockchain advocates have waxed poetic about forming an independent ecosystem, for now, crypto market valuations depend on the Fed.
For this list of cryptos to watch, I’m going to focus on technical analysis, particularly key price targets to watch. This way, you can prepare for multiple scenarios as we head into a possibly eventful new year.
The original virtual currency and still the benchmark of cryptos, Bitcoin (BTC-USD) enjoyed wild gains in 2021. However, at the time, the Fed continued to implement a dovish policy, thus spiking the money stock from already-elevated levels. Looking back in hindsight, it wasn’t that surprising that Bitcoin and other digital assets jumped.
The current hawkish profile presents major…
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