US Economic Data to Watch This Week for Crypto Investors | Airdrop Alert Pro

Starting Wednesday, February 12, the crypto market will cheer up amid four important U.S. economic events held this week. These macroeconomic events may affect the portfolio of Bitcoin (BTC) holders, which makes investors have to adjust their trading strategies.

During the dry period of 2023, the impact of U.S. economic events on bitcoin and cryptocurrencies is often gradually emerging.

CPI

January’s CPI (Consumer Price Index) report on Wednesday kicked off a list of U.S. economic data with cryptocurrencies this week. This is after the CPI rate rose slightly to 2.9% year-on-year in December (yes). Meanwhile, the core interest rate fell to 3.2%.

In the latest meeting, the Fed maintains its main Interest rate stable 4.25%-4.50%. They articulate the need to continuously improve inflation before considering it Reduce the rate. Cleveland Fed’s forecast inflation The Nowcasting model shows that the main CPI interest rate is 2.85%, representing a 0.5% reduction. They also predict that the core ratio has dropped slightly to 3.13%.

In addition to U.S. inflation figures, crypto markets will also be eager to hear comments from Fed Chairman Jerome Powell. His testimony is expected to play a key role in determining the direction of U.S. interest rates. His opinion on US President Donald Trump’s tariffs There will be significant interest.

Beincrypto recently reported The Fed is already worried about Trump’s policyprompting its measured rate strategy.

“Many participants suggested that various factors underline the need for careful monetary policy decisions in the coming quarters.” Indicated.

U.S. CPI data may affect risky assets like Bitcoin. High inflation will indicate that the hawkish Fed’s position may reduce the value of risky assets such as Bitcoin in the near term. Higher interest rates can make traditional investments more attractive.

On the other hand, if the CPI data shows lower inflation than expected, it may indicate a worse posture from the Fed. This is positive for Bitcoin. As investors seek alternative investments to protect their wealth, a lower inflation rate may increase demand for Bitcoin.

Initial Unemployment Statement

On Thursday, the U.S. Department of Labor (DOL) will release its weekly unemployment claims report that will shed light on the health of the U.S. labor market. U.S. economic data shows that the number of people applying for unemployment insurance last week provides a snapshot of labor market performance.

For the week ending February 1, the previous initial unemployed claims data was 219,000. Below expectations claims indicate continued job market strength, potential signals stabilize consumer spending and a resilient economy.

However, this strength may prompt the Fed to consider raising interest rates, which may raise the dollar, but weigh Bitcoin.

PPI

In addition, on Thursday, the US PPI (Producer Price Index) data will be released to understand inflation At the producer level. It also provides early signals about future consumer prices and may affect investor sentiment.

The U.S. Bureau of Labor Statistics (BLS) reports that it may have cryptocurrencies. This week’s U.S. PPI report will disclose producer-level inflation in January, with a median forecast of 0.3%. December’s data was 0.2% PPI, indicating that inflationary pressures are easing.

The U.S. PPI reading that exceeded expectations may indicate an increase in production costs, leading to higher consumer prices. Investors may turn to assets like Bitcoin as a hedge against inflation and raise demand and prices.

Positive or negative surprises in the US PPI data can also affect market sentiment and risky appetite. If the PPI shows an increase in inflation, investors may seek alternative assets such as Bitcoin as value or safe haven assets.

Instead, lower than expected PPI numbers may lead to risk sentiment in traditional markets, which may affect demand for cryptocurrencies.

Another point of view is the correlation between encryption and traditional markets. If the rise in PPI leads to a sell-off in stocks, some investors may redistribute their capital to Bitcoin and other digital assets.

“CPI and PPI are in, but it’s also a strong week for cryptocurrencies. This week is comparable to any previous crisis period. During a crisis you want to see the rise, Max Pain is upwards rather than down.” urge.

retail

U.S. retail data provides valuable insights into consumer spending patterns, economic growth and overall market sentiment. If Friday’s U.S. economic data is better than expected, it will show consumer spending and confidence in the economy.

This positive economic outlook may spread to the cryptocurrency market as investors may interpret it as a sign of overall market strength and stability.

Higher consumer spending may lead to increased disposable income, which some may allocate to cryptocurrencies like Bitcoin.

According to Beincrypto, BTC traded at $97,040 at the time of writing, and BTC’s trading has dropped 0.01% since the opening of Monday’s meeting.