Economic Catalysts: What to Watch for Bitcoin and Crypto This Week
The crypto market saw mixed results last week, with Bitcoin briefly hitting a new yearly high before retracing its gains. Ethereum also experienced a recovery but eventually gave up its upward momentum.
The crypto market saw mixed results last week, with Bitcoin briefly hitting a new yearly high before retracing its gains. Ethereum also experienced a recovery but eventually gave up its upward momentum.
Altcoins from the second and third tiers, however, showed resilience and made notable recoveries from previous price declines. Overall, the crypto market moved sideways, following the performance of US stock indices.
This week, two key economic factors will influence the crypto market. First, China will release its latest inflation data, providing insights into the world’s largest economy. Analysts expect a slight increase in consumer prices, which would indicate that the People’s Bank of China (PBOC) may continue its loose monetary policy to stimulate economic growth. Conversely, if inflation data shows an unexpected rise, it could signal a potential reversal in consumer price trends.
Second, the US Bureau of Labor Statistics will release consumer price data for June. If the data shows a further decline in inflation rates, it increases the chances of a pause in the Federal Reserve’s interest rate adjustment. A decline in inflation rates would benefit the US financial market and potentially stabilize the crypto market. However, if the core inflation rate increases beyond expectations, investors may divest from riskier assets like cryptocurrencies, as the likelihood of further interest rate hikes by the US central bank would rise.
Other important data points to watch include US producer prices, US GDP figures for the first quarter of 2023, and consumer expectations and sentiment. These factors will provide insights into the overall economic situation and could impact the performance of both traditional markets and the crypto sector.
In summary, last week’s performance in the crypto market was mixed, with Bitcoin and Ethereum retracing their gains while some altcoins showed resilience. This week, market participants should closely monitor economic data from China and the US, as they may provide key insights into the global economic landscape and impact the crypto market accordingly.
