Markets
Three things that could shake up cryptocurrency markets this week
All eyes are on Wednesday 12 June, the date of the US central bank’s policy decision on interest rates.
However, the Federal Reserve is likely to keep interest rates unchanged this week as well excellent employment data for May.
Policymakers are all but certain to keep rates in the 5.25% to 5.5% range for the seventh straight meeting.
They may also reduce the number of cuts planned for this year as policymakers digest a mixed set of economic data.
Economic calendar June 10-14
June 12th will be a very busy day with the release of the main CPI (consumer price index) reports. This data is a key measure of inflation in the economy and 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 unchanged. The annual CPI reading is likely 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 reported from CryptoPotato in May. A higher-than-expected CPI was bearish for the digital asset, while a lower-than-expected CPI was bullish.
Key events this week:
1. OPEC Monthly Report – Tuesday
2. May CPI inflation data – Wednesday
3. Fed Interest Rate Decision – Wednesday
4. Fed press conference – Wednesday
5. May PPI inflation data – Thursday
6. MI Consumer Confidence Data – Friday
It’s Fed week with…
— Kobeissi’s letter (@KobeissiLetter) June 9, 2024
The main PPI (producer price index) reports will be published on Thursday 13 June. This measures the average change over time in selling prices received by domestic producers of goods and services and is a valuable complementary indicator of inflation used by FOMC policy makers.
“The Fed is awaiting a round of data that will bolster its confidence that inflation is on a sustained path toward its 2% target.” She said Ryan Sweet, chief US economist at Oxford Economics.
Analysts expect the first rate cut to come at the central bank’s September policy meeting, the last meeting before the Nov. 5 presidential election.
“It [the Fed] should include two rate cuts this year and a round of cuts starting in September,” economists at Bank of America wrote in an investor note released Friday.
Impact on the cryptocurrency market
The Fed’s rate decision is likely already being factored into the cryptocurrency markets as it is almost a given that rates will remain unchanged.
There may be a little volatility mid-week, but the sideways momentum is likely to continue. Altcoins could suffer a blowhowever, as Bitcoin dominance remains high, keeping the altseason premise at bay for now.
Cryptocurrency trader “Emperor” shared his thoughts on the state of the market with his 390,000 followers on X on June 9th.
Controlling the cryptocurrency market.
Is the market in a confusing position right now? YES.
On the one hand we expect the Fed to cut rates, creating a market pump.
On the other hand, we have celebrity scams on the market, which require a Top.
My thought is simple.
If we go down to the 67-68K region,…— Emperor👑 (@EmperorBTC) June 9, 2024
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