Bitcoin (BTC) and the crypto market enter the week facing a series of events that could shape short-term price action. Key macroeconomic data, policy signals and sector-specific developments are expected to test market sentiment and influence the volatility of major digital assets. Traders and investors are watching these events closely as changing inflation and liquidity expectations could determine whether the market recovers or extends its momentum. downward pressure.
Events expected to move the Bitcoin and crypto market this week
Bitcoin and the broader crypto market are facing a pivotal week, with several high-impact economic events queue a few days before Christmas. With liquidity dwindling at year-end and the recent market slowdown, price reactions to macroeconomic developments may be more volatile than usual.
The period from December 16 to 19 features key U.S. economic data is released alongside global policy decisions that directly influence risk sentiment. Cryptocurrencies remain highly sensitive to changes in interest rates dollar expectations and liquidity, making this week decisive for Bitcoin’s near-term direction.
December 16, October retail sales data and November retail sales data US Jobs Report which is planned for release. This data provides insight into consumer strength and labor market conditions, both of which influence the extent to which monetary policy can remain tight. Typically, higher retail spending or job growth could reinforce expectations that interest rates will remain high for longer. This risk scenario often puts pressure on Bitcoin and other crypto assets as tightening financial conditions tend to reduce hot money flows.
Then come the months of November Consumer Price Index (CPI) inflation data and the Philadelphia Fed manufacturing index, due December 18. It should be noted that inflation remains one of the most important factors. influential drivers for crypto markets. If inflation turns out to be higher than expected, the US dollar could strengthen, weighing on Bitcoin prices. Conversely, weaker inflation data could support risk assets by improving prospects for quantitative easing (QE).
December 19 will see the release of several key economic reports, including the national basic CPI year-over-year November existing home sales, revised UoM consumer confidence and inflation expectations. The national core CPI is particularly important because it is the main measure of underlying inflation and often triggers market volatility.
Monetary policy events of the US FED and Japan
During the monetary policy meeting on December 18 and 19, the Bank of Japan (BOJ) it is expected that announce its interest rate decision, which could affect global liquidity conditions. In a recent speech, Governor Kazuo Ueda said the BOJ was weighing the pros and cons of raising interest rates from 0.5% to 0.75%. If a spike occurs, it could affect risky markets, including cryptocurrencies.
In addition, five US Federal Reserve conferences will be held. program this week. Their comments and ideas could quickly reshape crypto market expectations. Last week, the FED lowered rates by 25 basis points to its last FOMC meeting in 2025bringing the new US interest rate to 3.50-3.75%. This the rate cut triggered a surprising sell-offhighlighting a significant impact on Bitcoin and the broader crypto market.
Featured image created with Dall.E, chart from Tradingview.com
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
