Key U.S Economic Data Set to Influence Crypto Market This Week
- Data on the CPI and core CPI are anticipated to be released on July 11.
- The data would likely influence the Federal Reserve’s future attitude on rate-hike plans.
This week, the cryptocurrency market will be watching closely for important economic data and events that might influence the price of Bitcoin and other cryptocurrencies. Significantly, the last several weeks have been very unpredictable, with Bitcoin’s price seeing a precipitous decline last week. Bitcoin and altcoin euphoria seem to have waned in light of the recent government dump of Bitcoin and repayment worries surrounding Mt. Gox.
Important U.S. inflation statistics might be released this week, which could have a major influence. Data on the Consumer Price Index (CPI) and core CPI are anticipated to be released by the U.S. Labor Department on Thursday, July 11. Since the data would likely influence the Federal Reserve’s future attitude on rate-hike plans, the crypto market would closely monitor it.
High Volatility Expected
At the same time, on Friday, July 12, we should get the US Producer Price Index (PPI) numbers. This will reveal more about the present inflationary pressures in the US. What makes the Federal Reserve’s policy rate choices so important are these CPI and PPI numbers.
Jerome Powell, chair of the Federal Reserve, has said that relaxing monetary policy would need greater certainty in inflation prospects. For the reason that these impending economic indicators may cause Bitcoin and altcoins to experience more volatility.
This week, Bitcoin and altcoin traders will likely be influenced by Fed Chair Jerome Powell’s speech. Therefore investors are getting ready for it.
This testimony is timely because cryptocurrencies are becoming more sensitive to signals from the macroeconomy. Many in the industry believe that Powell’s comments may cause Bitcoin and the cryptocurrency market as a whole to see substantial price fluctuations.
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