tl;dr
The upcoming US economic events, including the CPI report, initial jobless claims, PPI data, and retail sales, are expected to impact Bitcoin and the overall crypto market. The CPI report may influence the direction of US interest rates, affecting Bitcoin's value. Lower-than-expected inflation could...
US economic events this week could impact Bitcoin portfolios, prompting the need for adjusted trading strategies. Wednesday's CPI report may indicate a decrease in inflation, influencing interest rates and Bitcoin value. Thursday's initial jobless claims report could signal job market strength, affecting consumer spending and potential interest rate changes. Also on Thursday, the US PPI data might reveal increasing production costs, impacting inflation, investor sentiment, and Bitcoin demand. Friday's US retail sales data may provide insights into consumer spending patterns, potentially affecting overall market sentiment and Bitcoin investment. The upcoming US economic events, including the CPI report, initial jobless claims, PPI data, and retail sales, are expected to impact Bitcoin and the overall crypto market. The CPI report may influence the direction of US interest rates, affecting Bitcoin's value. Lower-than-expected inflation could be positive for Bitcoin, while higher inflation may decrease its value in the short term. The initial jobless claims report will provide insights into the health of the US labor market, potentially impacting consumer spending and the economy. Additionally, the PPI data will offer indications of inflation at the producer level, which could influence investor sentiment and demand for Bitcoin. Positive retail sales data on Friday could signal strong consumer spending and market confidence, potentially impacting the cryptocurrency market. As of the report's writing, BTC was trading at $97,040, showing a minimal change since Monday's session. Crypto markets brace for four important US economic events this week, starting Wednesday, February 12. These macroeconomic events could affect the portfolios of Bitcoin (BTC) holders, making it imperative for investors to adjust their trading strategies. The influence of US economic events on Bitcoin and crypto generally is progressively resurfacing after a dried-up period in 2023.
CPI The January CPI (Consumer Price Index) report on Wednesday starts the list of US economic data with crypto implications this week. It comes after December’s CPI rate was slightly increased to 2.9% year-over-year (YoY). Meanwhile, the core rate decreased to 3.2%. Sponsored Sponsored In the latest meeting, the Fed kept its main interest rate steady at 4.25%- 4.50% . They articulated the need for continuous improvement in inflation before considering reducing rates. Forecasts from Cleveland Fed’s Inflation Nowcasting model suggest the main CPI rate will come in at 2.85%, representing a modest drop of 0.5%. They also predict the core rate to have slightly decreased to 3.13%. Beyond US inflation figures, crypto markets will also be keen to hear remarks from Federal Reserve (Fed) Chair Jerome Powell. His testimony is expected to play a crucial role in deciding the direction of US interest rates. What he says about US President Donald Trump’s tariffs will be of significant interest. BeInCrypto recently reported that the Fed is already concerned about Trump’s policies , prompting their measured rate-cut strategy. The US CPI data could affect risk-on assets like Bitcoin. High inflation would suggest a hawkish Federal Reserve stance, which could decrease the value of risk-on assets like Bitcoin in the short term. Higher interest rates can make traditional investments more attractive. On the other hand, if CPI data shows lower-than-expected inflation, it may indicate a more dovish stance from the Fed. This would be positive for Bitcoin. Lower inflation rates could increase demand for Bitcoin as investors seek alternative investments to protect their wealth.
INITIAL JOBLESS CLAIMS On Thursday, the US Department of Labor (DoL) will release its weekly jobless claims report, which will shed light on the health of the US labor market. This US economic data indicates the number of people who filed for unemployment insurance last week, providing a snapshot of the labor market’s performance. Sponsored Sponsored The previous initial jobless claims data came in at 219,000 for the week ending February 1. Lower-than-expected claims suggest continued job market strength, potentially signaling steady consumer spending and a resilient economy. However, such strength might prompt the Fed to consider raising interest rates, which could boost the USD but weigh on Bitcoin.
PPI Also, on Thursday, the US PPI (Producer Price Index) data will be out, offering insight into inflation at the producer level. It also provides early signals about future consumer prices and can influence investor sentiment. The US Bureau of Labor Statistics (BLS) report could have crypto implications. This week’s US PPI report will disclose January’s producer-level inflation, with a median forecast of 0.3%. December’s data came in at 0.2% PPI, indicating that inflationary pressures were easing. A higher-than-expected US P