The crypto market is bracing for a pivotal week as key US inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI), are set to be released.
These reports, coupled with other significant economic indicators, are expected to influence Federal Reserve monetary policy decisions and, by extension, the trajectory of Bitcoin.
Big media predicts CPI Inflation report could reduce 2025 Fed rate cut expectations.
Explore: Saylor Targets Another Bitcoin Buy: Will Bitcoin Bounce and When Is Altcoin Season?
Inflation Data In Focus: CPI and PPI Reports
This week’s economic calendar is packed with critical data releases that could shape market dynamics for both traditional and digital assets.
14 January 2025, Tuesday: December PPI Data
The Producer Price Index measures input costs for producers and manufacturers, offering insights into inflationary pressures at the production level. A higher-than-expected PPI could signal rising costs that may eventually be passed on to consumers, intensifying inflation concerns.
15 January 2025, Wednesday: December CPI Data
The Consumer Price Index is a key indicator of consumer-level inflation and is closely watched by policymakers and markets alike. Core CPI data, which excludes volatile food and energy prices, will be particularly scrutinized for signs of persistent inflationary trends.
16 January 2025, Thursday: December Retail Sales Report
Retail sales data will provide a snapshot of consumer spending behavior during the holiday season. Strong retail sales could indicate robust economic activity but may also reinforce inflationary pressures.
16 January 2025, Thursday: Philadelphia Fed Manufacturing Index
This index gauges manufacturing activity in the Philadelphia region and serves as a leading indicator for broader economic trends.
17 January 2025, Friday: December Housing Starts Data
Housing starts data will shed light on construction activity—a sector often sensitive to interest rate changes.
Additionally, seven Federal Reserve officials are scheduled to speak this week, offering potential clues about the central bank’s policy outlook ahead of its 29 January 2025 meeting. Let’s see how all of this can impact crypto.
Key Events This Week:
1. December PPI Inflation data – Tuesday
2. December CPI Inflation data – Wednesday
3. December Retail Sales data – Thursday
4. Philadelphia Fed Manufacturing Index – Thursday
5. December Housing Starts data – Friday
6. Total of 7 Fed speaker events…
— The Kobeissi Letter (@KobeissiLetter) January 12, 2025
Crypto Update: Bitcoin And Ethereum Outlook
Bitcoin’s current price action suggests it is struggling to maintain support levels above $94,000 amid broader market weakness.
On the upside, reclaiming $96,000 would be an encouraging sign for bulls aiming for new all-time highs later this year.
Conversely, any recovery above $96,000 and $100,000 may offer a perfect launch pad for prices to rally above $108,000 in a buy-trend continuation pattern.
This uptick would provide major tailwinds for altcoins for Ethereum, Solana, Dogecoin, and even Tron. When writing, they are down, on average, 15% over the last trading week.
Ethereum faces similar challenges around the $3,200 mark after an 11% weekly drop. However, a recovery above $3,300 might signal renewed investor confidence in Ethereum’s long-term prospects—particularly given its ongoing role as a backbone for decentralized finance (DeFi) and non-fungible token (NFT) ecosystems.
Explore: Best Crypto to Buy In The Dip: These Coins Could Unlock Life-Changing Gains
The post Big Week For Crypto Markets: US Inflation Data To Shape Market Sentiment appeared first on 99Bitcoins.