Crypto Markets Brace for Impact Ahead of Crucial Economic Reports
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Crypto markets remained stagnant over the weekend, showing no signs of recovery from last week’s $300 billion crash. Investors are now closely watching this week’s Consumer Price Index (CPI) report, a crucial indicator of inflation that could hint at the economy’s recovery trajectory and potentially impact crypto markets.
Economic Calendar June 8-12
Federal Reserve Chair Jerome Powell is set to testify before the Senate and House on Tuesday and Wednesday, focusing primarily on monetary policy. Powell indicated last week that despite some progress in reducing inflation, policymakers still lack the confidence to begin cutting rates.
However, recent signs of a weakening job market and easing wage pressures have bolstered investor confidence in a potential rate cut by September.
Thursday’s release of the June CPI report is highly anticipated, as it is one of the key indicators used to measure inflation in the United States. This report provides insights into price trends and influences the Fed’s monetary policy decisions.
On Friday, the June Producer Price Index (PPI) report will be released, measuring the cost of producing consumer goods and impacting retail prices, serving as another measure of inflationary pressures monitored by policymakers.
Additionally, June’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations are due on Friday, offering data on consumer confidence and long-term inflation views.
This week also features a series of Q2 earnings reports from major U.S. banks, adding to the economic data investors will digest, all of which could influence the crypto markets.
Crypto Market Impact
Crypto markets continued to face pressure, partly due to selling from Mt. Gox redemptions and actions by the German government. The total market capitalization dropped 3.4% to $2.14 trillion on Monday morning, reaching the lowest levels since late February.Bitcoin fell to an intraday low of $54,320 on Sunday before recovering to around $57,000.
Despite this slight rebound, Bitcoin remains bearish in the short term, and the correction may persist regardless of favorable inflation reports. Ethereum also struggled to gain ground, failing to surpass $3,000 over the weekend and dropping to $2,830 during Monday morning’s Asian trading session.
By the time of writing, ETH had climbed back to $2,900. The broader altcoin market continued to suffer, with many assets returning to bear market lows, reflecting the overall stress in the crypto markets.
In order to place winning trades with us via Bybit, You can open an account here.
