Markets
Three Things That Could Shake Crypto Markets This Week
All eyes are on Wednesday, June 12, which is the date of the US central bank’s policy decision on interest rates.
However, the Federal Reserve is expected to keep interest rates unchanged this week after strong jobs data for May.
Policymakers are almost certain to keep rates in the 5.25% to 5.5% range for the seventh meeting in a row.
They could also reduce the number of cuts planned for this year, as policymakers digest a mix of economic data.
Economic Calendar June 10th to 14th
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 leave them unchanged. The year-on-year CPI value is expected to remain the same at 3.4%, suggesting that the central bank will not change rates this week.
There have been strong correlations between Bitcoin price and CPI data this year, such as reported by CryptoPotato in May. The higher-than-expected CPI was bearish for the digital asset, while the lower-than-expected CPI was bullish.
Main 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 sentiment data – Friday
It’s Fed week with…
– The Kobeissi Letter (@KobeissiLetter) June 9, 2024
On Thursday, June 13, the main PPI (producer price index) reports will be released. This measures the average change over time in sales prices received by domestic producers of goods and services and is a valuable complementary inflation indicator used by FOMC policymakers.
“The Fed is awaiting a series of data that strengthens its confidence that inflation is on a sustained path toward its 2% target,” he said Ryan Sweet, chief US economist at Oxford Economics.
Analysts expect the first rate cut to come at the central bank’s monetary policy meeting in September, its last meeting before the November 5 presidential election.
“This [the Fed] should project two rate cuts this year and a cycle of cuts that begins in September,” Bank of America economists wrote in a note to investors published on Friday.
Impact on the crypto market
It is likely that the Fed’s rate decision has already been factored into crypto markets, as rates are almost certain to remain unchanged.
There may be a bit of volatility mid-week, but sideways momentum will likely continue. Altcoins can take a hitHowever, as Bitcoin dominance remains high, keeping the premise of the new season in check for now.
Crypto trader ‘Emperor’ shared his thoughts on the state of the market with his 390,000 followers on X on June 9.
Crypto market check.
Is the market in a confusing position right now? Yes.
On the one hand, we expect the Fed to cut rates, causing the market to boom.
On the other hand, we have Celebrity Scams on the market, asking for a Top.
My thinking is simple.
If we drop to the 67-68K region,…– Emperor👑 (@EmperorBTC) June 9, 2024
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