US Economic Events to Watch This Week Could Impact Bitcoin Holders' Portfolios
This week, the crypto markets are gearing up for four significant US economic events set to kick off on Wednesday, February 12. These macroeconomic indicators have the potential to sway Bitcoin (BTC) holders' portfolios, necessitating strategic adjustments from investors.
The interplay between US economic events and the crypto sphere is regaining prominence following a lull in 2023.
CPI: Consumer Price Index (CPI)
To start the week, Wednesday will see the release of the January CPI report, indicating potential implications for the crypto space. December saw a slight uptick in the CPI rate to 2.9% year-over-year (YoY), while the core rate dipped to 3.2%.
The Federal Reserve (Fed) maintained its key interest rate at 4.25%-4.50% in the recent meeting and stressed the importance of sustained inflation improvement before contemplating rate cuts. Projections from the Cleveland Fed suggest a marginal decline in the main CPI rate to 2.85%, along with a slight drop in the core rate to 3.13%.
Aside from US inflation data, market participants will be closely monitoring Fed Chair Jerome Powell's testimony, expected to wield significant influence on US interest rate policies. Powell's insights on President Donald Trump's tariff measures will also be closely scrutinized.
Notably, the Fed has expressed reservations about the impact of Trump's policies, prompting a cautious approach to rate adjustments.
Initial Jobless Claims
Thursday's focus will shift to the US Department of Labor's weekly jobless claims report, offering insights into the labor market's status. Previous data showcased 219,000 initial jobless claims for the week ending February 1, with lower-than-anticipated figures suggesting continued labor market strength, potentially bolstering consumer spending and economic resilience.
Producer Price Index (PPI)
Also scheduled for Thursday is the release of the US PPI data, providing a glimpse into producer-level inflation dynamics. This data not only offers early signals on consumer price trends but can also sway investor sentiments.
Higher-than-expected PPI readings might point to escalating production expenses, potentially resulting in increased consumer prices. In such scenarios, investors could turn to assets like Bitcoin for inflation protection, driving up demand and prices.
Retail Sales
Wrapping up the week, Friday sees the unveiling of US retail sales data, shedding light on consumer spending patterns and market sentiment. Upbeat economic indicators could translate to robust consumer spending, fostering confidence in the economy.
This optimistic outlook could spill over into the cryptocurrency realm, with potential manifestations in market strength and stability perceptions.
BTC Price Performance
As of the most recent update, BTC was valued at $97,040, marking a negligible decrease since the start of the week. As the week progresses, market participants are advised to stay attuned to these pivotal economic events, ready to adapt their investment strategies accordingly.