Bitcoin
US CPI Inflation, Fed Chair Testimony to Shape Bitcoin and Altcoin Trading This Week
The cryptocurrency market is eagerly awaiting crucial economic indicators and major events that are likely to shape Bitcoin and altcoin trading this week. Notably, the past few weeks have been highly volatile, with the price of Bitcoin recording a freefall last week. Given the recent government crisis Bitcoin Dump and concerns over Mt. Gox payouts, optimism towards BTC and altcoins seems to have faded.
So, let’s explore the key events that are likely to impact Bitcoin and altcoin trading in the coming week.
Bitcoin and Altcoins Prepare for Major Events This Week
US inflation data to boost sentiment
The release of crucial US inflation data this week could significantly impact Bitcoin and altcoins negotiation. On Thursday, July 11, the U.S. Department of Labor is expected to release the Consumer Price Index (CPI)
and core CPI data. The cryptocurrency market would keep a close eye on the data as it would likely help define the Federal Reserve’s future stance with its rate hike plans.
At the same time, the US Producer Price Index (PPI) data is due to be released on Friday, July 12, which will also shed light on the current inflationary pressures in the US. Notably, these CPI and PPI numbers are key to the Federal Reserve’s monetary policy decisions.
Recently, Fed Chairman Jerome Powell indicated that more confidence is needed in inflation trends before easing monetary policy. Considering that Bitcoin and altcoins may face increased volatility based on these upcoming economic indicators.
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Testimony from Fed Chairman Jerome Powell
Investors are bracing for Fed Chairman Jerome Powell’s upcoming testimony, a key event that is expected to influence Bitcoin and altcoin trading this week. Powell’s insights on monetary policy and economic conditions will be closely monitored as they are likely to impact market sentiment and trading strategies.
The statement comes at a crucial time, with digital assets showing heightened sensitivity to macroeconomic signals. Market participants anticipate that Powell’s remarks could trigger significant price changes for Bitcoin and the broader cryptocurrency market.
For context, Fed Chairman Jerome Powell is scheduled to testify before the Senate Banking Committee on July 9. In addition, he is scheduled to testify before the House Financial Services Committee on July 10.
Where are Bitcoin and Altcoins headed?
If the inflation data turns out to be cooler than expected, the cryptocurrency market could witness a robust rally as investor confidence grows. However, if the data suggests that inflation, which has been cooling off lately, is heading in another direction, it could dampen market sentiment.
Meanwhile, Bitcoin, along with altcoins, has seen significant selling pressure lately, due to Germany and US Governments Bitcoin dump. Also, Mt. Gox Refund concerns about Bitcoin and BCH have also fueled uncertainty in the market.
However, despite this, several positive indicators could help boost market sentiment in July. For example, Bitcoin and other digital assets tend to show positive performance in July, historical data shows. While historical data does not guarantee future performance, it has bolstered market confidence.
At the same time, the expectation about the next US Spot Ethereum ETF Approval in mid-July would also trigger a rally in the altcoin sector. Despite this, inflation figures and other macroeconomic factors are likely to impact Bitcoin and altcoin trading this week.
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