This Week’s US Inflation Data Could Rattle Crypto Markets
Estimated Reading Time: 2 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
The upcoming week is set to be busy with economic data, including crucial inflation figures. Will they affect crypto markets?
Over the weekend, crypto markets held steady after a decline last week, bringing total capitalization down to $2.38 trillion. This week’s economic calendar, featuring crucial inflation data and Federal Reserve speeches, may introduce more volatility and hint at future monetary policy direction.
Schedule of Economic Events
On Tuesday, the core PPI (Producer Price Index) report will be published, indicating input prices for producers and manufacturers.
This index measures the costs of producing consumer goods and impacts retail pricing directly. It serves as a leading indicator for the upcoming month’s CPI (Consumer Price Index) report, signaling inflationary pressures.
On Wednesday, April’s Core CPI report will be released, one of the key indicators for measuring inflation alongside Personal Consumption Expenditures (PCE).
CPI significantly influences price trends, consumer spending, and business outlooks, directly affecting Federal Reserve policy rate decisions. This week includes 12 Federal Reserve speaker events, including chair Jerome Powell on Tuesday.
According to a recent Conference Board survey of company CEO expectations, a majority of US CEOs anticipate just one rate cut by the Fed this year. Elon Musk criticized the Fed over the weekend, likening it to the Monopoly board game, where the in-game bank can print money as needed.
Cryptocurrency Market Analysis
This week’s inflation report could have an impact on the crypto market. In Asia this Monday morning , the crypto markets are quiet, with minimal movement among the major cryptocurrencies.
Bitcoin is trading around $61,000, showing little change from yesterday. However, it’s down 4.3% compared to last week.
Ethereum has struggled to reclaim the $3,000 mark after dropping below it on May 10th and currently sits at $2,900, showing a short-term bearish trend.Most altcoins are experiencing losses, particularly Solana, Dogecoin, Avalanche, and Near Protocol.
In order to place winning trades with us via Bybit, You can open an account here.
