Four Major Economic News in the US This Week Could Shake the Cryptocurrency Market

This week, the expected release of important US economic reports may create significant fluctuations in the cryptocurrency market, especially Bitcoin. Advisors are monitoring this data in the hope of gaining insights into the policy guidance of the US Federal Reserve(Fed) and its impact on alternative investment channels.

1. Consumer Price Index (CPI) July On Wednesday, the grim monthly CPI report will appear, marking a crucial column in evaluating the price changes of the point-of-sale activities. Recent developments: In December, the composite inflation index may have a slight decrease, while the core index - excluding energy and food - tends to decrease. Fed's expectations: Currently, the Fed maintains high yields to restrain inflation, but they are also monitoring the downward trend to refine their policy in the future. Impact on the cryptocurrency market: If the data shows a significant reduction solution, investors may expect an accommodative monetary policy, which could drive up the price of Bitcoin and other risky assets. Conversely, a higher than expected inflation rate could lead the Fed to continue tightening its policy, reducing the attractiveness of the cryptocurrency market. In addition to CPI data, comments from Fed Chairman Jerome Powell on economic plans and policy directions will also be the first focus of consultants. These expressions may provide insights into whether the Fed may adjust interest rates in the near future.
2. Data Request Unemployment Assistance On Thursday, the report on the number of initial business assistance requests will be released, providing an overall picture of the health of the US labor market. The meaning of the data: A large amount of support requests indicates that the labor market is maintaining stability, with strong recruitment activities. This may provide energy for consumer spending but also has the potential to provide appropriate stimulus. Monetary policy impact: A strong labor market may force the Fed to maintain, even strengthen, tight monetary policies to control inflation. This often makes the USD more preferred, as risk assets such as cryptocurrencies may face short-term price pressure.
3. Export Commodity Price Index (PPI) Along with the labor report, PPI data will be released in the second year, showing the detected variations from the production angle. Recent developments: The December report shows that the application of production capacity is gradually increasing. However, it is forecasted that the processing month will enhance the relaxation ability. Impact on consumer distribution capability: If production costs increase more than expected, it may lead to an increase in consumer prices. This situation often provides advisors with channels to seek investment protection value such as Bitcoin.installation of contrasts: On the contrary, if PPI data is enhanced slowly or even reduced, it will try to strengthen confidence in the economic media system, causing capital withdrawal from risky assets such as cryptocurrencies.
4. Comprehensive Impact and Prospects of Crypto Market The combination of CPI data, business assistance requirements, and PPI is creating a complex economic landscape, in which: Monetary policy: Any changes from the Fed based on these reports will directly affect market sentiment. A trend of low inflation and the possibility of interest rate cuts could provide impetus for Bitcoin price increase, as advisors seek alternative options to traditional asset transmission systems. Investment sentiment: If data indicates signs of enhanced capacity or an overheated labor market, advisors may shift capital transactions to other channels, reducing demand for cryptocurrencies. Market volatility: In the context of the highly volatile cryptocurrency market, any signals from the US macroeconomy can significantly alter investment trends. Conclusion This week, when official economic reports are released, investors will not only track the raw numbers but also consider comments and forecasts from the Fed. Four economic data - CPI, initial jobless claims, PPI, and officials' findings - are expected to provide a comprehensive view of the US economy, thereby determining investment decisions in the future. In the context of the cryptocurrency market gradually gaining widespread acceptance but still very sensitive to macroeconomic fluctuations, upcoming data could be a determining factor for the trend of Bitcoin and other digital assets. Consultants need to prepare for various scenarios, from seizing opportunities when the market changes to adjusting strategies to minimize risks in the future. DYOR! #Write2Earn #BNBChainMeme $BTC {spot}(BTCUSDT)