Markets
Three things that could shake crypto markets this week
All eyes are on Wednesday June 12, the date of the American central bank’s policy decision on interest rates.
However, the Federal Reserve is expected to keep interest rates unchanged this week, following solid employment data for May.
Policymakers are almost certain to keep rates in the 5.25% to 5.5% range for a seventh straight meeting.
They could also reduce the number of cuts planned for this year, as policymakers digest a mix of mixed economic data.
Economic calendar from June 10 to 14
June 12 will be a very busy day with the release of major CPI (consumer price index) reports. This data is a key measure of inflation in the economy, it has a significant impact on the Fed’s monetary policy decisions, including interest rate adjustments.
A higher CPI reading indicates rising inflation, which typically puts pressure on the Fed to raise interest rates or keep them the same. The one-year CPI figure is expected to remain the same at 3.4%, suggesting the central bank will not change rates this week.
There have been strong correlations between Bitcoin price and CPI data this year, as reported by CryptoPotato in May. A higher than expected CPI has been bearish for the digital asset, while a lower than expected CPI has been bullish.
On Thursday June 13, the main PPI (Producer Price Index) reports will be released. This indicator measures the average change over time in selling prices received by domestic producers of goods and services and is a valuable supplemental inflation indicator used by FOMC policymakers.
“The Fed is awaiting a series of data that will reinforce its confidence that inflation is on a sustained path toward its 2% target,” said Ryan Sweet, chief US economist at Oxford Economics.
Analysts expect the first rate cut to come at the central bank’s policy meeting in September, its last meeting before the Nov. 5 presidential election.
“He [the Fed] “We should expect two rate cuts this year and a reduction cycle that begins in September,” Bank of America economists wrote in a note to investors released Friday.
Impact on the crypto market
The Fed’s rate decision will likely already be factored into crypto markets, as it is almost a given that rates will remain unchanged.
There could be a bit of volatility mid-week, but sideways momentum is expected to continue. Altcoins can be touchedHowever, as Bitcoin dominance remains high, altseason principle remains at bay for now.
On June 9, cryptocurrency trader “Emperor” shared his thoughts on the state of the market with his 390,000 followers on X.