Important events that may affect the crypto market this week
This week is generally expected to be a busy one for the crypto sector, as several important economic events are expected that could affect the price dynamics of cryptocurrencies. The spotlight intensifies on Wednesday, June 12, marking the anticipated announcement from the U.S. central bank regarding its stance on interest rates.
Despite the anticipation, it's expected that the Federal Reserve will maintain the current interest rate levels this week, bolstered by the robust employment figures for May.
It is highly probable that the rates will remain within the 5.25% to 5.5% spectrum for the seventh continuous meeting.
Furthermore, there's a potential adjustment in the forecast for rate reductions this year as the officials mull over a diverse set of economic indicators.
Economic Highlights for June 10-14
Significant attention is directed towards June 12, poised for the release of core CPI (consumer price index) figures. This crucial inflation gauge plays an influential role in the Federal Reserve's decisions on monetary policy, including the adjustment of interest rates.
An uptick in the CPI signifies rising inflation, often prompting the Fed to consider increasing or maintaining current interest rate levels. The annual CPI is projected to steady at 3.4%, indicating that an alteration in rates is unlikely this week.
CPI readings above forecasts have negatively impacted the cryptocurrency, whereas figures below expectations have had a positive effect.
On Thursday, June 13, the spotlight shifts to the release of core PPI (producer price index) data. This metric assesses the change over time in the selling prices domestic producers receive for goods and services, offering another critical view on inflation for Federal Open Market Committee (FOMC) decision-makers.
Oxford Economics noted that the Fed is on the lookout for data that will bolster its confidence that inflation will move consistently toward the 2% target level.
Market analysts are eyeing the central bank's September policy meeting for the initial rate reduction, setting the stage before the November 5 presidential election.
The anticipation surrounding the Federal Reserve's rate decision is likely already reflected in the crypto markets, with a consensus expectation of unchanged rates.
A minimal bout of volatility may occur mid-week, yet the prevailing lateral market movement is anticipated to persist. Nevertheless, altcoins might experience downturns, as Bitcoin's dominance continues to forestall the emergence of an altseason for the foreseeable future.
