Altcoins
US CPI Inflation and Fed Chairman Testimony to Shape Bitcoin and Altcoin Trading This Week
The cryptocurrency market is eagerly awaiting the crucial economic indicators and key events that are likely to shape Bitcoin and altcoin trading this week. The past few weeks in particular have been highly volatile, with the price of Bitcoin experiencing a free fall last week. Given the recent government decisions Bitcoin Download and Mt. Gox concerns about the refund, optimism about both BTC and altcoins seems to have faded.
So, let’s look at the key events that are likely to impact Bitcoin and altcoin trading next week.
Bitcoin and Altcoins Prepare for Key Events This Week
US inflation data to drive sentiment
The release of crucial US inflation data this week could have a significant impact on Bitcoin and altcoins trading. 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 be watching the data as it would likely help determine the future stance of the Federal Reserve 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 United States. In particular, both CPI and PPI data are key to the Federal Reserve’s decisions on key interest rates.
Recently, Fed Chairman Jerome Powell indicated that more confidence in inflation trends is needed before easing monetary policy. Considering that Bitcoin and altcoins could face high 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 watched, as they are likely to impact market sentiment and trading strategies.
The testimony comes at a crucial time, with digital assets showing increased sensitivity to macroeconomic signals. Market participants expect Powell’s remarks to lead to significant changes in Bitcoin prices and the broader cryptocurrency market.
For context, Fed Chair Jerome Powell is scheduled to testify to the Senate Banking Committee on July 9. He was also scheduled to testify to the House Financial Services Committee on July 10.
Where are Bitcoin and Altcoins Going?
If inflation data turns out to be cooler than expected, the cryptocurrency market could see a strong rally as investors gain confidence. However, if data suggests that inflation, which has cooled recently, is heading in a different direction, it could dampen market sentiment.
Meanwhile, Bitcoin along with altcoins has seen significant selling pressure lately, due to Germany and the United States Governments Bitcoin download. Also, Mt. Gox Refund Concerns about Bitcoin and BCH have also fueled uncertainty in the market.
However, despite this, several positive indicators could help strengthen market sentiment in July. For example, Bitcoin and other digital assets tend to show positive performance in July, as shown by historical data. Although historical data does not guarantee future performance, it has strengthened market confidence.
At the same time, the wait for the next US Ethereum Spot ETFs approval in mid-July would also trigger a rally in the altcoin sector. Despite this, inflation data and other macroeconomic factors are likely to impact Bitcoin and altcoin trading this week.
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