- The crypto market enters a critical week as the US releases CPI and PPI inflation data, which presents the Federal Reserve members with a chance to “pause” interest rate hikes.
- Traders are now awaiting this week’s CPI data to confirm the market’s direction while also being cautious throughout September, historically the worst month for markets.
- Wall Street analysts also believe there may be a potential interest rate hike by the end of the year. Furthermore, the US Dollar Index (DXY) is still trading above 104.50, posing a risk of continued pressure on BTC prices.
The economic data to be announced in the US this week may be a critical determinant for Bitcoin and cryptocurrency prices: Markets are focused on the FED’s move!
A Week Filled with Critical Data for the Crypto World
The crypto market enters a critical week as the US releases CPI and PPI inflation data, which presents the Federal Reserve members with a chance to “pause” interest rate hikes. This could propel Bitcoin and Ethereum prices off their lows, bring about a market-wide recovery, and validate a bullish outlook for the remainder of the year.
The market expects the annual CPI to come in at 3.6%, surpassing the 3.2% seen in July. Additionally, the core annual CPI for August is anticipated to decrease to 4.3% from July’s 4.7%. Monthly core PPI data is expected to drop back to 0.2%, according to market predictions.
Given the cooling labor market and an increase in the unemployment rate last month, it’s assumed that the Fed has probably completed its interest rate hikes. Traders are now awaiting this week’s CPI data to confirm the market’s direction while also being cautious throughout September, historically the worst month for markets.
CME FedWatch indicates a 93% probability of a pause at the next FOMC meeting on September 20th. Wall Street analysts also believe there may be a potential interest rate hike by the end of the year. Furthermore, the US Dollar Index (DXY) is still trading above 104.50, posing a risk of continued pressure on BTC prices.
In addition, the European Central Bank (ECB) will announce its interest rate decision on Thursday. Expectations are leaning towards a pause, despite continuous interest rate hikes since last year.
Bitcoin and Ethereum Prices Under Pressure
With the increase in DXY and the delay in the SEC’s decision on spot Bitcoin ETFs, the crypto market has remained stagnant. Traditional market participants are exerting pressure on the US SEC to approve a Bitcoin ETF.
BTC’s price has been relatively flat over the past 24 hours and the past week, currently trading at $25,810. However, there has been an increase in trading volume in the past 24 hours, indicating heightened interest among traders.
On the other hand, ETH’s price has decreased by 0.7% over the past 24 hours and nearly 2% over the past week. It is currently trading at $1,611, with a trading volume that has increased by 85% in the past 24 hours.
