What’s in Store for Bitcoin This Week? 6 Things to Watch Out For

Cryptocurrency markets spent the weekend relatively stable, failing to recover from last week’s $300 billion crash.

In addition, investors will be closely watching this week’s consumer price index report, as it is a key inflation indicator that can signal the direction of the economic recovery. Economic calendar June 8-12

Federal Reserve Chairman Jerome Powell will testify before the Senate and House of Representatives on Tuesday and Wednesday, focusing mainly on monetary policy.

The central bank chief said last week that while some progress had been made in the fight against inflation, policymakers were still not confident enough to cut interest rates.

However, signs of a weakening labor market and easing wage pressure last week have boosted investor confidence in a rate cut in September.

Thursday is the day to watch for the June CPI report. It is one of two key indicators used to measure inflation in the United States. The data shows changing price trends and is used by the Fed to make monetary policy decisions.

Highlights of this week:

1. Federal Reserve Chairman Powell Testifies – Tuesday

2. OPEC Monthly Report – Wednesday

3. CPI inflation data for June – Thursday

4. PPI inflation data for June – Friday

5. Michigan Consumer Sentiment Data – Friday

6. A total of 9 Fed speaker events this week

Fasten your seat belts…

— Kobeissi Letter (@KobeissiLetter) July 7, 2024

Friday will see the release of the Producer Price Index (PPI) report for June, which measures the cost of producing consumer goods. This has a direct impact on retail prices and is also a measure of inflationary pressures that policymakers are looking at.

The June Michigan Consumer Sentiment Index and Consumer Inflation Expectations are due Friday. These surveys provide data on consumer confidence and long-term views on inflation.

This week, in addition to the economic reports, we will also witness a series of Q2 earnings reports from some of the country’s largest banks. Impact on the cryptocurrency market

Unfortunately for cryptocurrency investors, the markets were devastated by selling pressure from Mt. Gox buyouts and the German government.

The industry’s total capitalization fell 3.4% to $2.14 trillion on Monday morning, pushing markets to their lowest level since late February.

Bitcoin fell to an intraday low of $54,320 on Sunday before rebounding slightly toward $57,000. However, the asset looks set to remain bearish in the short term, and the correction may not be over yet even if inflation reports are positive.

Ethereum failed to make gains above $3,000 this weekend, falling to $2,830 during Monday’s morning trading session in Asia. However, at the time of writing, ETH has reclaimed $2,900.

As was the case for most of July, altcoins were in a sea of red, with many of them reverting to bear market lows.