YEREVAN (CoinChapter.com) — This week, the United States economic calendar includes significant inflation data that could influence crypto markets. Key reports, including the Consumer Price Index (CPI) and Producer Price Index (PPI), may guide Federal Reserve policy ahead of its Jan. 29 meeting.
Key Economic Events. Source: Kobeissi LetterUS Inflation Data to Shape Federal Reserve Decisions
Several inflation reports scheduled for this week are crucial for market dynamics. The Producer Price Index (PPI), to be released on Tuesday, measures the costs incurred by producers and manufacturers. This data is a leading indicator of inflation, reflecting price trends that could affect retail pricing.
Consumer Price Index Overview. Source: U.S. Bureau of Labor StatisticsOn Wednesday, the Core Consumer Price Index (CPI) will provide insight into price changes for consumer goods and services. According to Reuters, “firmer-than-expected CPI data could push back expectations for further Federal Reserve rate cuts.”
US Core CPI Data. Source: Investing.comLast week, the Consumer Sentiment Index revealed heightened inflation expectations, aligning with trends in the ISM Services PMI report. Fed Governor Michelle Bowman described inflation as being “uncomfortably above” its long-term target, emphasizing persistent risks.
Retail Sales and Bank Earnings in Focus
The December Retail Sales report, set for Thursday, will offer an overview of consumer spending on both durable and non-durable goods. It serves as an important indicator of economic health, helping assess whether inflation impacts consumer behavior.
In addition, corporate earnings from major US banks like JPMorgan and Goldman Sachs will kick off the reporting season, providing further context on the economic landscape.
Crypto Markets See $300 Billion Decline
Last week, over $300 billion exited the cryptocurrency market. Weekend trading activity remained flat, but early Monday morning in Asia saw a brief spike, followed by a correction.
Bitcoin rose to $96,000 during the session but quickly fell below $94,000, marking a 5% decline over the past week.
Bitcoin Price Chart. Source: TradingViewEthereum mirrored this movement, reaching $3,300 before retreating to $3,200, an 11% weekly loss.
Ethereum Price Chart. Source: TradingViewOther major altcoins, such as Cardano (ADA), Tron (TRX), Sui (SUI), and Stellar (XLM), also reported larger losses, contributing to the overall market downturn.
Crypto Markets Remain Flat
Total cryptocurrency market capitalization dropped below $3.16 trillion at the start of the week. While trading activity briefly spiked, Bitcoin and Ethereum remain volatile. Above all, market participants are watching closely as economic data unfolds, potentially influencing the crypto sector in the coming days.
Crypto Market Cap Chart. Source: TradingViewThe post Can US Inflation Data Shake Up Crypto Markets This Week? appeared first on Coinchapter.
