HomeBitcoinInflation Data This Week Could Influence Bitcoin Price Movement

Inflation Data This Week Could Influence Bitcoin Price Movement

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Bitcoin Volatility Expected to Increase with Release of Major Economic Reports

Bitcoin (BTC) has seen a modest rally in the past 72 hours, but the cryptocurrency market is bracing for potential volatility as three major economic reports are set to be released later this week.

Currently trading at $62,700, up 2% in the past 24 hours, Bitcoin has managed to bounce back from Friday’s low. The broader CoinDesk 20 Index is also up by 1.25% over the past day.

The upcoming U.S. inflation reports, specifically the Producer Price Index (PPI) on Tuesday and the Consumer Price Index (CPI) on Wednesday, are expected to be key catalysts for the market. Economists are forecasting a rise in both indices, with the CPI report being of particular importance.

High inflation rates have led to uncertainty regarding Federal Reserve rate cuts in 2024, with markets now pricing in a low chance of any easing monetary policy this year. A strong inflation report could even lead to expectations of a rate increase by the Fed.

In addition to the inflation reports, Wednesday will also see the release of the U.S. government’s retail sales report for April. The data will provide insights into consumer spending trends and the overall health of the economy.

Investors will also be closely watching Fed Chair Jerome Powell’s remarks at the annual general meeting of the Foreign Bankers’ Association in Amsterdam on Tuesday. Powell’s views on the current economic situation, including inflation and growth prospects, will be closely scrutinized by market participants.

Overall, the cryptocurrency market is on edge as it awaits these key economic reports and speeches, which could potentially drive further volatility in Bitcoin and other digital assets.

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