Cryptographic markets are accumulating for four important American economic events this week, from Wednesday, February 12. These macroeconomic events could affect the portfolios of Bitcoin (BTC) holders, which makes investors imperative to adjust their negotiation strategies.
The influence of American economic events on bitcoin and crypto generally resurfaced after a drying period in 2023.
Cpi
The January CPI (Consumer Price Index) report Wednesday begins the list of American economic data with cryptographic implications this week. It occurs after the rate of the December IPC was increased slightly to 2.9% from one year to another (annual sliding). Meanwhile, the central rate decreased to 3.2%.
During the last meeting, the Fed maintained its stable main interest rate 4.25% – 4.50%. They expressed the need for continuous improvement in inflation before considering Rate reduction. The forecasts of the Cleveland Fed inflation model do not suggest that the main IPC rate will be 2.85%, which represents a modest drop of 0.5%. They also predict that the central rate has slightly decreased to 3.13%.
Beyond American inflation figures, cryptographic markets will also be eager to hear the remarks of the President of the Federal Reserve (Fed), Jerome Powell. His testimony should play a crucial role in deciding on the American interest rate department. What he says about the prices of US President Donald Trump will be of significant interest.
Beincryptto recently pointed out that the Fed was already concerned about Trump’s policies, which prompted their measured rate cutting strategy.
“Many participants have suggested that various factors have stressed the need for a careful approach to monetary policy decisions in the coming quarters,” said the minutes in December.
IPC American data could affect risk assets such as Bitcoin. High inflation would suggest a federal feet bellicist reserve, which could reduce the value of risk assets such as short -term bitcoin. Higher interest rates can make traditional investments more attractive.
On the other hand, if the CPI data shows lower than expected inflation, this may indicate a more dominant position of the Fed. It would be positive for Bitcoin. Lower inflation rates could increase Bitcoin demand, as investors are looking for alternative investments to protect their wealth.
Initial unemployment complaints
On Thursday, the American Labor Department (DOLD) will publish its weekly report on unemployment complaints, which will highlight the health of the American labor market. These American economic data indicate the number of people who requested unemployment insurance last week, providing an instantaneous labor market performance.
Previous data of initial unemployment complaints were made at 219,000 for the week ending on February 1. Complaints below what planned suggest a continuous labor market force, potentially signaling stable consumption expenditure and resilient economy.
However, such force could encourage the Fed to consider increasing interest rates, which could increase the USD but weigh on bitcoin.
PPI
On Thursday, the American data PPI (Producer Price Index) will also be available, offering an overview of inflation at the producer level. It also provides early signals on the prices of future consumer prices and can influence the feeling of investors.
The American Labor Statistics (BLS) report could have cryptographic implications. This week’s American PPI report will disclose inflation in January producers, with a median forecast of 0.3%. December data reached 0.2% PPI, which indicates that inflationary pressures take turns.
A higher American PPI reading than expected can indicate increasing production costs, which causes higher consumer prices. Investors can turn to assets such as Bitcoin such as coverage against inflation, which increases demand and prices.
Positive or negative surprises in American PPI data can also influence the feeling of the market and risk appetite. If the PPI shows an increase in inflation, investors can look for alternative assets like Bitcoin as a reserve of value or paradise assets.
Conversely, the figures of the IPP lower than what planned could lead to a feeling of risk on the traditional markets, potentially influencing the demand for cryptocurrencies.
Another perspective is the correlation between crypto and traditional markets. If the increase in the PPI leads to a sale in equity, certain investors can reallocate their capital to Bitcoin and other digital assets.
“CPI and PPI arrive, but also a strong week for the crypto seems to be on the horizon. This week is comparable to any period of previous crisis. During periods of crisis, you would like to be optimistic, and Max Bread is up, not down, “said Crypto analyst Michaël Van de Poppe.
Retail sales
US retail data data provides valuable information on consumer spending models, economic growth and overall market feeling. If Friday’s American economic data is better than expected, this would indicate strong expenses and consumer confidence in the economy.
These positive economic perspectives could spread in the cryptocurrency market, as investors can interpret it as a sign of global market and stability of the market.
Higher consumer expenses could increase the available income, which some people can award cryptocurrencies such as bitcoin.
According to Beincryptto data, BTC was negotiated at $ 97,040 when writing this article, down 0.01% since the opening of the session on Monday.
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