Upcoming US Economic Data to Impact Crypto Market
Crypto market players, ranging from traders to investors, are advised to stay prepared for a series of critical US economic updates scheduled for this week. These events have the potential to sway their portfolios. Following last week's release of US CPI figures, markets could face increased volatility as key events unfold.
While markets will remain closed on Monday for US President’s Day, Bitcoin (BTC) trading will continue without interruption.
Top US Economic Events on the Crypto Radar This Week
Given the significance of US economic data on crypto markets, traders and investors need to keep an eye on the following crucial reports this week:
January FOMC Minutes
This Wednesday, February 19, the Federal Reserve (Fed) will unveil the minutes from January’s FOMC (Federal Open Market Committee) meeting. The upcoming release is particularly noteworthy as it could shed light on the Fed's stance on interest rates, with potential implications for market sentiment.
In response to the recent uptick in CPI inflation, market sentiments in the crypto sphere turned slightly pessimistic. Nonetheless, there are no strong indications of a rapid acceleration in inflation. Federal Reserve Chairman Jerome Powell emphasized a conservative approach to interest rate adjustments, diverging from President Donald Trump's call for significant rate cuts to counter inflationary pressures.
Expectations are high for the January FOMC minutes to echo Powell’s recent Senate testimony on economic conditions, providing valuable insights for market participants.
Initial Jobless Claims
In addition to the FOMC minutes, the crypto community will closely monitor Thursday's release of initial jobless claims data. These figures offer a glimpse into the state of the US labor market, with the previous week's new unemployment insurance applications reaching 213,000.
An uptick in initial jobless claims could signal economic challenges and a vulnerable labor market, potentially leading to reduced consumer spending. Such conditions may prompt the Fed to consider rate cuts to stimulate economic activity, favoring assets like Bitcoin.
Consumer Sentiment
Closing the week, the US Consumer Sentiment Index, particularly the preliminary report from the University of Michigan, will be disclosed on Friday. A positive outcome may boost confidence in the economy and financial markets, fueling demand for growth-oriented assets like Bitcoin.
In parallel, strong consumer sentiment could drive increased spending and risk appetite among investors, benefiting cryptocurrencies. However, potential inflation concerns could shift market sentiment, underscoring the importance of the FOMC minutes in gauging investors’ reactions in response to economic data.
Despite Bitcoin trading at $95,984, down 1.58% from Monday’s opening, market participants are urged to remain vigilant and adaptable in response to evolving economic indicators.