Impact of Delayed CPI Report on Crypto Markets This Week
As the US government shutdown continues, the release of key inflation data could influence the cryptocurrency market soon.
The US government remains in a shutdown, curtailing the availability of crucial economic data and hindering policymakers from making informed decisions.
Crypto markets consolidated over the weekend, registering minor increases for major assets, yet they show no signs of a renewed bullish trend. Despite the government shutdown, a significant inflation report that was supposed to be released in September is now delayed, which could be the last major economic data available for the Federal Reserve prior to their interest rate decision next week.
Last week, Federal Reserve Chair Jerome Powell indicated their plan to potentially reduce short-term interest rates during their upcoming meeting later this month. Simultaneously, the market is closely monitoring Trump’s impending 100% tariff deadline on China set for November 1, as highlighted in the Kobeissi Letter.
Key Economic Events (October 20-24)
- Thursday: Release of existing home sales data, which won’t affect crypto markets.
- Friday: The crucial Consumer Price Index (CPI) report for September will be released, postponed due to the government shutdown. This is notable as it is the first CPI report scheduled on a Friday since January 2018, according to the Kobeissi Letter.
“This comes during a highly pivotal time for the Fed as they debate whether to continue rate cuts or not.”
Additionally, October’s PMI report and Michigan Consumer Sentiment data are also due on Friday.
Key Events This Week:
- ~10% of S&P 500 companies release their earnings.
- US Crude Oil Inventory data – Wednesday.
- Existing Home Sales data – Thursday.
- September CPI Inflation data – Friday.
- October Services PMI data – Friday.
- October Michigan Consumer Sentiment…
- Kobeissi Letter ⟶ @KobeissiLetter
The crypto market’s total capitalization climbed 2% in the last 24 hours, reaching $3.85 trillion. Bitcoin is at the forefront, hitting a daily high of $110,500 early in trading. Ether has also surged back, surpassing the $4,000 mark. Altcoins have mostly trended upwards, notably Dogecoin, Cardano, Chainlink, and Sui. Analysts remain optimistic, asserting that the bull market is still ongoing.
