Bitcoin: Monitor The Key Figures Of This Week!

This week, the U.S. economic calendar could well be the catalyst for significant movements for Bitcoin. With crucial inflation data and economic reports directly influencing Federal Reserve decisions, cryptocurrency investors should expect a busy week. As Asian markets show a recovery in momentum this Monday, the crypto world seems poised for the release of U.S. economic figures. A price quake could be on the horizon.

Inflation Data at the Heart of the Storm

Bitcoin is increasingly sensitive to major economic announcements. This week, the market eagerly awaits several key economic reports.

This Wednesday, the Federal Reserve will unveil the minutes of its September meeting, offering a glimpse into the decision-makers’ mindset regarding the current economic situation.

These minutes are scrutinized by analysts and investors looking for clues on the Fed’s future directions.

Thursday, the Consumer Price Index (CPI) report for September will be released. This figure is one of the main indicators of inflation in the United States and heavily influences Fed decisions on interest rates.

If the CPI reveals a stronger-than-expected increase, it could fuel speculation about a new rate hike, a scenario that could shake the Bitcoin market.

The publication of the Producer Price Index (PPI) on Friday will add another layer of potential volatility.

Considered a precursor to the CPI, this upstream inflation indicator plays a key role. A rise in the PPI could signal persistent inflation, making Bitcoin more vulnerable to a price correction.

The Impacts of Fed Decisions on Bitcoin

The Federal Reserve’s decisions, influenced by inflation data, are essential for the evolution of Bitcoin.

Indeed, the interest rate cuts observed in September favored crypto markets by increasing liquidity and making assets more attractive compared to bonds.

If this week reveals weak inflation growth, the likelihood of a further rate cut could increase, which would be good news for Bitcoin.

However, the situation is far from simple. The employment figures published last week show an unexpected resilience of the U.S. labor market, which could strengthen the arguments for maintaining current rates or even an increase.

This uncertainty places Bitcoin in a precarious position. Indeed, a rate hike could drive down prices of high-risk assets, of which Bitcoin is a part.

Furthermore, the escalation of geopolitical tensions, especially in the Middle East, adds additional pressure. Global markets are often nervous in the face of such conflicts, and this could indirectly influence demand for assets like Bitcoin, considered by some as a safe haven.