As the crypto market gears up for a big week, all eyes are on upcoming important economic indicators. Investors are eagerly awaiting U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data that will shed light on inflation trends.
Meanwhile, these indicators are having a significant impact on market sentiment and crypto valuations amid growing concerns about a possible interest rate cut by the Federal Reserve.
Cryptocurrency market awaits CPI and PPI data
As important economic data approaches this week, crypto markets are bracing for its impact. Scheduled to be released are the US Consumer Price Index (CPI) and Producer Price Index (PPI), which are extremely important indicators in determining inflation trends. These numbers, along with the March Federal Open Market Committee (FOMC) meeting minutes and monthly US federal budget announcements, will provide key insights that crypto market participants will be watching closely.
Meanwhile, on Wednesday, April 10th, the CPI, the Fed's March FOMC minutes, and the monthly US federal budget are scheduled to be announced. In particular, these indicators serve as important barometers for assessing current inflation levels and the overall health of the economy.
At the same time, the US Producer Price Index (PPI) is scheduled to be released on Thursday, April 11th, and the market's attention is further increasing. These data will be closely watched by regulators as well as investors for potential clues about the Fed's future stance on rate hike plans.
Meanwhile, the latest increase in non-farm payrolls in March was higher than expected at 303,000, compared with 275,000 in the previous month, reflecting a buoyant job market. Despite the unemployment rate dropping to 3.8% and hourly wages rising 0.3%, concerns about the Fed's hawkish stance persist in the crypto market. Strong employment data could delay expected interest rate cuts and further impact market sentiment and crypto valuations.
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Concerns amid expectations for Bitcoin halving
Aside from the all-important announcements, speeches from various Fed officials, including Atlanta Fed President Rafael Bostic and San Francisco Fed President Mary Daley, will add further depth to the economic discussion. According to the CME FedWatch Tool, there is a 95.2% chance that the Federal Reserve will keep interest rates unchanged, and investors in the crypto market are bracing for potential market changes based on upcoming data.
Meanwhile, expectations for the upcoming Bitcoin halving event are also rising as investors wait for economic data that could influence Fed policy. While there is widespread optimism about the potential for Bitcoin and the broader crypto market to rally, concerns about short-term volatility post-halving remain.
As experts weigh the potential outcomes, the cryptocurrency community remains on high alert, closely monitoring developments that could shape the future trajectory of digital assets.
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