Could Crypto Markets Rally After This Week’s Important US Inflation Reports?
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This week, there will be a significant release of key economic data in the United States, potentially affecting the crypto markets.
The upcoming week promises to be eventful on the US economic front, featuring crucial inflation data and the minutes from the March Federal Reserve meeting.
Market participants are particularly anticipating the release of Core Consumer Price Index (CPI) figures, as they serve as a pivotal indicator for inflation trends.
Furthermore, the commencement of the Q1 2024 earnings season on Friday will bring reports from top banks in the country.
Schedule of Economic Events
Wednesday will see the release of the March Core CPI data, which serves as one of the two primary indicators for measuring inflation, alongside the Personal Consumption Expenditures (PCE).
The Consumer Price Index (CPI) reflects the prevailing price trends in the economy and significantly influences the Federal Reserve’s policy rate decisions.
Market Watch forecasts a slight decrease in the figures.On Thursday, the Producer Price Index (PPI) report for March will be released, indicating input costs for producers and manufacturers.
This index is pivotal as it directly impacts retail pricing and serves as an early indicator of inflationary pressures. Friday, April 12, will witness the release of April’s Michigan Consumer Sentiment Index and preliminary Consumer Inflation Expectations reports.
These reports, derived from monthly consumer confidence surveys, provide insights into long-term inflation views. Consumer confidence plays a crucial role in driving spending, which accounts for approximately 70% of the nation’s GDP.
Wednesday features the release of the minutes from the March Federal Open Market Committee (FOMC) meeting, along with scheduled speeches from several central bank officials, including Chair Jerome Powell.
Given the Fed’s persistent concern over inflation, these reports will be closely scrutinized for indications regarding its trajectory.
The current official inflation rate in America stands at 3.2%, with an anticipated increase to 3.4% for March. Such fluctuations could prompt market volatility.
Cryptocurrency Market Assessment
Over the weekend, the cryptocurrency markets maintained a relatively stable position, with a total capitalization of $2.71 trillion observed on Monday morning in Asia.
Bitcoin experienced a momentary surge surpassing $70,000 on Sunday but swiftly reverted back to $69,500, maintaining a tight trading range over the past 24 hours.
Meanwhile, Ethereum saw a 1% increase, reaching $3,420 at the time of this update. However, most altcoins are showing losses on Monday morning, particularly Solana and Litecoin.
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