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- Key US economic events, including CPI, PPI, Initial Jobless Claims, and retail sales, will heavily impact the crypto market. this week.
- These indicators will provide insight into inflation trends, labor market conditions, and consumer spending, which could influence future Fed policy and crypto price action.
Following Donald Trump’s re-election to the White House and the Fed rate cut announcement at the FOMC meeting last week, Bitcoin and the broader crypto market have shown strength with the BTC price hitting a fresh all-time high of $81,858 earlier today, reported CNF.
No coins selectedAlong with BTC, altcoins have also followed the gains staging a strong show with Ethereum and other alts extending their weekly gains to more than 30%. The US macroeconomic data will continue to weigh on the future action of BTC and the broader crypto market, with trader and investor volatility ahead. This week, all eyes will be on the key four macro indicators comprising CPI, PPI, Initial Jobless Claims, and US retail sales. Let’s take a look at each of these.
1. US CPI and Impact on Crypto Market
On Wednesday, November 13, the Federal Reserve (Fed) chair Jerome Powell will release the data for the U.S. Consumer Price Index (CPI) for the last month of October. This comes a week after the FOMC decision of the 25 bps rate cut and the CPI will be a key indicator that will influence the Fed policy decisions moving ahead.
The U.S. Consumer Price Index (CPI) for September was 2.4%, down from 2.5% in August and 2.9% in July, indicating a general cooling in inflation since April. Economists expect headline inflation to decrease by 0.2% in October, with core CPI—which excludes volatile food and energy costs and is more closely monitored—projected to decline by 0.3%.
If the inflation numbers come hotter than expected, it might put a halt to the crypto market rally. On the other hand, the indications of slowing inflation would give the Fed greater room for future rate cuts, leading to liquidity infusion in the market.
2. Initial Jobless Claims
Another key U.S. economic event this week is the release of initial jobless claims, with continued claims providing insight into the size of the unemployed population. The Labor Department will publish this data on Thursday, November 14, following a recent increase of 3,000 new applications, reaching 221,000 for the week ending November 2.
This data comes amid the Fed’s growing concerns over the gradual softening of the labor market. It was also one of the major reasons behind the 50 bps rate cut by the Fed back in September, reported CNF. In response to ongoing labor market trends, Fed officials implemented an additional quarter-point rate cut last week.
3. US PPI Data and Crypto Market Impact
This week, The US Bureau of Labor Statistics (BLS) will also release October’s Core Producer Price Index (PPI), which determines the price increase at the producer level.
Its impact on financial markets lies in its measurement of inflation at the wholesale level. Rising PPI signals increasing production costs, potentially driving up energy and hardware expenses essential for crypto mining and processing.
Thus, the PPI numbers coming higher than expected would negatively impact the price of Bitcoin and the overall crypto market.
4. US Retail Sales
The US retail sales report rounds out the key economic events with potential crypto implications this week. The Census Bureau will release the data on Friday, providing insights into consumer spending trends.
Retail sales represent a significant portion of the US economy. In September, sales rose by 0.4%, and a 0.3% increase is anticipated for October.
Strong retail sales in October would suggest reduced recession fears, signaling a healthy economy and rising consumer spending.
