The crypto market will be in the spotlight this week, with important data points, events, and keynotes scheduled. The market is watching economic data to determine the ultimate trajectory of Bitcoin price and the possibility of a bull market.
Out of all the data points, these are the top three data points that the market pays attention to.
US retail sales
Mr. Powell and his associates have expressed a desire for a more balanced supply and demand in the labor market. But March's inflation data showed this won't happen soon. Some investors believe there is little chance of inflation rising again because the U.S. economy has stabilized to the point where further growth is possible. This is evidenced by the slowdown in employment and income growth. To test this theory, the following U.S. nonfarm payroll data will be essential. Next week's retail sales data will shed more light on the same theme: the Fed's rate-cutting trajectory.
Good data points could boost investor sentiment, thereby triggering a bull market in Bitcoin.
Fed Vice Chairman Philip Jefferson speaks
The market currently has high expectations that the US Federal Reserve will lower interest rates. Investors will be watching closely as Fed Vice Chairman Philip Jefferson is scheduled to speak this week. Historically, investors have relied heavily on the Federal Reserve's interest rate decisions when valuing assets. Government bonds can lose value as interest rates fall, making alternative assets like Bitcoin more attractive.
If interest rates fall soon, the crypto market will benefit from higher risk appetite and stronger purchasing power. This could further the idea that Bitcoin's bull run will continue.
Bitcoin halving
The upcoming Bitcoin halving event is expected to take place in April 2024, approximately six days from today.
In the world of cryptocurrencies, the Bitcoin halving event is of particular importance. Every time 210,000 blocks are mined, the amount of new coins in circulation is cut in half, and this event occurs every four years. By gradually lowering miners' block rewards, halving them will help manage supply and demand.
Bitcoin halving essentially creates an imbalance in supply and demand, which could lead to a bull market in Bitcoin.
