Bitcoin: Watch for this week’s key figures!

This week, the American economic calendar could well be the catalyst for significant movements for Bitcoin. With crucial inflation data and economic reports directly influencing the Federal Reserve's decisions, cryptocurrency investors should expect an eventful week. While Asian markets show renewed momentum this Monday, the crypto world seems to be hanging on the release of US economic figures. A price earthquake could be on the horizon.

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Inflation data at the heart of the storm

Bitcoin is increasingly sensitive to major economic announcements. This week, the market is eagerly awaiting several key economic reports.

This Wednesday, the Federal Reserve will release minutes from its September meeting, providing insight into how policymakers are feeling about the current economic situation.

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These minutes are scrutinized by analysts and investors looking for clues about the future directions of the Fed.

THURSDAY, the Consumer Price Index (CPI) report for September will be published. This figure is one of the main indicators of inflation in the United States, and it weighs heavily on the Fed's decisions regarding interest rates.

If the CPI reveals a stronger rise than expected, it could fuel speculation of another rate hike, a scenario that could shake up the Bitcoin market.

The release of the Producer Price Index (PPI) on Friday will bring another layer of potential volatility.

Considered a precursor to the CPI, this upstream inflation indicator plays a key role. A rise in PPI could signal persistent inflation, making Bitcoin more vulnerable to a price correction.

The impacts of the Fed's decisions on Bitcoin

The decisions of the Federal Reserve, influenced by inflation data, are essential for the evolution of Bitcoin.

Indeed, the drop in interest rates observed in September favored crypto markets by increasing liquidity and making assets more attractive compared to bonds.

If this week reveals weak inflation growth, the likelihood of further rate cuts could increase, which would be good news for Bitcoin.

However, the situation is far from simple. Employment figures released last week show unexpected resilience in the US labor market, which could strengthen the case for maintaining current rates or even increasing them.

This uncertainty places Bitcoin in a precarious position. Indeed, a rise in rates could cause the prices of high-risk assets, including Bitcoin, to fall.

In addition, the escalation of geopolitical tensions, particularly in the Middle East, adds additional pressure. Global markets are often nervous about such conflicts, and this could indirectly influence demand for assets like Bitcoin, seen by some as a safe haven.

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