Three Factors Likely to Impact Cryptocurrency and Bitcoin Rates This Week
As the US economic calendar heats up, key reports may affect cryptocurrency prices amid recent market volatility.
Three Factors Likely to Impact Cryptocurrency and Bitcoin Rates This Week
A busy week is expected ahead in the United States, as market participants anticipate important economic indicators. Recent gains seen in the crypto market seem to have diminished.
Focus on Inflation Reports
All attention will be directed toward the PCE inflation report this week, following the latest CPI figures released last week. January’s CPI data was slightly lower than projected, with an annual inflation rate of 2.38% and core CPI at 2.5%, marking the lowest readings since early 2021. This result previously invigorated the stock and crypto markets last Friday but the gains were quickly reversed over the weekend.
“Meanwhile, geopolitical tensions remain, and macroeconomic uncertainty is elevated,” said the Kobeissi Letter, cautioning of “more volatility this week.”
Upcoming Economic Events (February 16-20)
Markets in the US will be closed on Monday for President’s Day. On Tuesday, employment data will be updated, followed by the retail sales report from January. Midweek will reveal more consumer spending information, including delayed Durable Goods Orders figures from December. The Fed’s meeting minutes will also be published on Wednesday, alongside ten speeches from central bank officials that could hint at future monetary policy actions.
Investors will have an early glimpse of economic growth for the fourth quarter with the GDP report slated for Thursday. The week’s highlight will be the December Personal Consumption Expenditures inflation report.
Market Reactions
After the previous week’s rally, cryptocurrency markets saw total capitalization decrease by 2.5% in the last 24 hours, now reverting to $2.41 trillion. Bitcoin’s price dropped below $70,000, reaching $68,300 at the start of Asian trading on Monday. Meanwhile, Ether values plummeted significantly, dropping to approximately $1,950.
The data signal volatility, and experts are cautious, suggesting that economic developments will be pivotal in shaping market sentiments going forward.
