What’s in Store for Bitcoin This Week? 6 Things to Watch
Crypto markets have spent the weekend relatively flat, having failed to recover anything from last week’s $300 billion crash.
Moreover, investors will closely watch this week’s Consumer Price Index report, as it is a key indicator of inflation that could signal the direction of economic recovery.
Economic Calendar June 8-12
Fed chair Jerome Powell will testify before the Senate and the House on Tuesday and Wednesday, focusing primarily on monetary policy.
The central bank boss said last week that while there has been some progress towards bringing down inflation, policymakers still did not have enough confidence to begin cutting rates.
However, last week’s signs of a weakening job market and easing wage pressures have increased investor confidence in a rate cut in September.
Thursday is the day to watch the release of the June CPI report. This is one of the two key indicators used to measure inflation in the United States. The data shows changing price trends and is used by the Fed for its monetary policy decisions.
Key Events This Week:
1. Fed Chair Powell Testifies – Tuesday
2. OPEC Monthly Report – Wednesday
3. June CPI Inflation data – Thursday
4. June PPI Inflation data – Friday
5. Michigan Consumer Sentiment data – Friday
6. Total of 9 Fed speaker events this week
Buckle up for…
— The Kobeissi Letter (@KobeissiLetter) July 7, 2024
Friday will see the release of June’s Producer Price Index (PPI) report, which measures the cost of producing consumer goods. This directly impacts retail prices and is also a measure of inflationary pressures eyed by policymakers.
June’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations are expected on Friday. These surveys provide consumer confidence data and long-term views on inflation.
This week, in addition to economic reports, we will also see a slew of Q2 earnings reports from some of the nation’s major banks.
Crypto Market Impact
Unfortunately for crypto investors, markets have been battered by selling pressure from Mt. Gox redemptions and the German government.
The industry’s total capitalization declined 3.4% on Monday morning to $2.14 trillion, sending markets to their lowest levels since late February.
Bitcoin fell to an intraday low of $54,320 on Sunday before recovering slightly in a move back toward $57,000. However, the asset seems to remain bearish in the short term, and the correction may not be over yet, even if inflation reports are positive.
Ethereum failed to make gains above $3,000 this weekend, falling to $2,830 during the Monday morning Asian trading session. However, at the time of writing, ETH had reclaimed $2,900.
As has been the case for most of July, the altcoins were a sea of red, with many returning to bear market lows.
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