Last week’s trading on the cryptocurrency market was turbulent. It started off well but quickly went south by the end. Significantly, the week began with great expectation that Bitcoin would achieve a new high, as predicted by a number of analysts. However, with the robust U.S. Job Data on Friday, the outlook has shifted, pointing to a more aggressive approach from the Federal Reserve.
Investors will closely monitor the important events scheduled for next week in the current tumultuous market conditions.
Crypto Market Will Monitor These Important Occurrences
Impact of US PPI and CPI Inflation Data on the Crypto Market
Investors in the cryptocurrency market will closely monitor this week’s major inflation statistics, as the May U.S. Consumer Price Index (CPI) is set to be released on Wednesday, June 12. Critical indicators of price increases, such as the CPI and the Core CPI, will provide a clear picture of the amount of inflation in the United States.
The U.S. Producer Price Index (PPI) and the Core PPI are other essential measures to examine the nation’s inflation patterns. Notably, the May inflation statistics for the U.S. PPI and the Core PPI are anticipated to be issued on Thursday, June 13.
These two pieces of data may determine the Fed’s future position on interest rate plans. These data would give investors in the cryptocurrency market and the larger financial industry additional information about how the U.S. Federal Reserve will address inflationary pressures following last week’s mixed U.S. Job data.
FOMC Rate Decision and Jerome Powell Meeting
On June 12, the FOMC will decide on interest rates, and Fed Chair Jerome Powell will hold a press conference. This comes after the release of U.S. CPI inflation statistics. While the market as a whole expects the Federal Reserve to maintain its policy rate at its current level, the Fed’s remarks will provide insight into the central bank’s possible future actions.
Although observers of the cryptocurrency market had previously predicted at least two rate cuts this year, with bets set for November, the grim labor market data from last week now presents a mixed picture. Given this, the Fed’s comments this week will significantly impact how the cryptocurrency market performs going forward.
In summary
In addition to these significant occasions, we will also see the monthly U.S. Federal Budget announcement this Wednesday. On June 14, preliminary consumer sentiment data will also be disclosed, offering insights into the cryptocurrency market beyond current market patterns.
In the meantime, the cryptocurrency market saw a significant increase in optimism following the European Central Bank’s (ECB) move last week to lower interest rates by 25 basis points. Furthermore, several market observers anticipated that the U.S. Federal Reserve would take a similar action in the upcoming days.
The stronger-than-expected job figures, however, quickly altered the mood and contributed to the significant selloff in the cryptocurrency market last week. This week’s important events and economic data collection will likely influence how the cryptocurrency market performs going forward.
