The financial market has gone through difficult times recently, with major macroeconomic concerns weighing on investor sentiment. In particular, recent economic indicators such as the US Jobs data and the hawkish comments of Fed officials have fueled concerns among traders. Having said that, investors are now eagerly awaiting the US CPI inflation and PPI data, which are expected to be released later this week. In addition, it also fueled speculation about how these signals could affect the performance of BTC and altcoins ahead.
Crypto Market Awaits US CPI Inflation Data
The crypto market is now eagerly awaiting the US CPI inflation data, scheduled for Wednesday, January 15, for clues about current economic health. In particular, recent indicators such as strong US Job data have fueled investor concerns recently.
According to the latest data from the Labor Department, the US added 256,000 jobs in December, exceeding the market forecast of 160,000. In addition, the unemployment rate decreased to 4.1% from 4.2% in the previous month.
This strong data from the US labor market reinforced expectations over a possible hawkish move by the Federal Reserve ahead. In particular, it seems that the central bank may stick to its tight monetary policy and the market may have to wait until June for the first Fed rate cut this year.
What to expect from the US CPI?
US CPI inflation is one of the main focus of the financial market this week, not to mention the crypto space. According to market estimates, the Consumer Price Index is expected to remain unchanged at 0.3%, while the YoY CPI is likely to come in at 2.9%, up from the previous month's figure of 2.7% .
On the other hand, the Core CPI, which excludes food and energy prices, is expected to cool at 0.2% from the 0.3% figure announced last month. Meanwhile, the Headline CPI is expected to remain unchanged on a year-over-year basis at 3.3%.
This suggests that the market is already bracing for hot inflation data this week. However, if the data comes in more than expected, it could dampen the investor sentiment and affect the performance of BTC and altcoins. In other words, the hotter-than-expected numbers may give investors more room to maneuver with their hawkish plans ahead.
US PPI Inflation Also in Charts
In addition to the US CPI inflation data, market watchers are also eagerly awaiting the upcoming US PPI data. Producer Price Index (PPI) data is scheduled for Tuesday, January 14. It is another key metric that the Fed considers to measure inflationary pressures in the market.
If this data comes in hotter than expected, the central bank could move forward with higher interest rates to tackle inflation. In addition, it could greatly affect the mood of the traders and put pressure on the performance of the crypto market.
What's Next for BTC & Altcoins?
Bitcoin and the major altcoins have recorded volatile trading, especially after Fed Chairman Jerome Powell indicated just two rate cuts through 2025 last month. Before that, the market was betting on more than four rate cuts this year.
In addition, recent comments from Fed officials have had a negative impact on market sentiment. In particular, the officials said that the central bank will closely monitor the economic data and other factors before deciding to lower the interest rates. Having said that, market participants will be keeping a close eye on the US CPI and PPI inflation data.
Having said that, there may be volatile trading against the broader crypto market in the coming days, if the US Federal Reserve decides to move forward with a hawkish plan. However, despite the short-term concerns, several market observers were still confident about the long-term path of the digital asset.
Red Rupa
Rupam is a seasoned professional with three years of experience in the financial market, where he has earned a reputation as a research analyst and insightful journalist. It succeeds in exploring the dynamic nuances of the financial landscape. Currently a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role includes breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news .
Rupam's career has been marked by a deep passion for solving financial complexities and delivering impactful stories that resonate with diverse audiences.
Disclaimer: The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication is responsible for your personal financial loss.
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