Cryptocurrency markets are gearing up for an important week ahead, featuring key events that could shape investor sentiment and the trajectory of the market. Bitcoin has recently hit all-time highs, and expectations are rising as important inflation data and various developments emerge. From Federal Reserve announcements to blockchain upgrades, these events are poised to influence market trends in the coming days.
Meanwhile, inflation statistics are gaining weight after Federal Reserve Chairman Jerome Powell's testimony hinted at the possibility of interest rate cuts, but the timing remains uncertain and the crypto market is There is growing debate. Chairman Powell's remarks before the Senate Banking Committee suggest that interest rate cuts may be forthcoming until inflation is sustained at 2%.
Market expectations have changed from expectations at the start of the year of multiple rate cuts to expectations that the first rate cut will occur in June, with a total cut of 1 percentage point by the end of 2024. Furthermore, Chairman Powell emphasized the need to avoid a recession and expressed caution about policy normalization as the economy recovers.
Key events to watch this week
US Consumer Price Index (CPI) data
February U.S. Consumer Price Index (CPI) data, crucial to the Fed's inflation assessment, is scheduled to be released on March 12th. Investors in the crypto market are awaiting insight on future Fed policy, especially as the annual CPI inflation rate fell to 3.1% in January. , which slightly exceeded expectations.
Furthermore, the annual core inflation rate in January remained stable at 3.9%, higher than expected. Although there was a slowdown in January compared to December, CPI remained above the Fed's 2% target, suggesting continued inflationary pressures in the economy.
US Producer Price Index (PPI) data
The US Producer Price Index (PPI) will be released on March 14th (Thursday) and will influence the Fed's decision to cut interest rates. PPI rose 0.3% in January, the largest increase since August 2023.
Meanwhile, core PPI, which excludes food and energy, rose 0.5%, beating Wall Street expectations. With that in mind, crypto market enthusiasts will be keeping an eye on February's CPI and PPI data for the Fed's potential moves on its future rate cut plans.
Also read: Ethereum’s Layer 2 Ecosystem Surpasses $37 Billion, Leaving Competitors Behind
Ethereum Dencun Upgrade
Investors in the cryptocurrency market are optimistic as Ethereum’s long-awaited Dencun upgrade arrives on March 13th. The upgrade promises to reduce transaction costs on Layer 2 networks and is expected to boost activity and garner mainstream attention.
As uncertainty looms over the market, expectations are rising among crypto market investors as they focus on the possibility of Ethereum's price rising after the upgrade. Moreover, expectations for the SEC's approval of the Ethereum ETF have also increased optimism about the Ethereum price.
Fed’s BTFP expiry
Investors in the cryptocurrency market are growing anxious as the Federal Reserve's BTFP, a key system for stabilizing the US banking sector, is set to expire in March 2024. The scheme, launched in response to bank failures, is due to expire on March 12, raising concerns about the impact on liquidity and the potential impact on crypto prices.
Notably, the program, launched amid uncertainty due to the pandemic, aims to counter the impact of bank failures and rising interest rates, suggesting a critical period for market stability. ing.
FTX Customer and Non-Customer Creditor Meeting
On March 15th, FTX Digital held its first meeting with both customers and non-customer creditors, stirring expectations across the cryptocurrency market. The results of the deliberations have important implications for the virtual currency field and may affect investor sentiment and market stability.
conclusion
In a week full of pivotal developments, crypto markets are bracing for the impact of important inflation data that could impact the Federal Reserve's interest rate decisions. Amid this expectation, there is widespread optimism over the impending Ethereum Dencun upgrade, which is expected to improve scalability and reduce transaction costs.
Additionally, market participants remain cautious as concerns about liquidation intensify ahead of the Fed's BTFP expiration. As investors navigate these dynamic landscapes, the intersection of macroeconomic indicators, technological advances, and regulatory changes will come into focus and shape the trajectory of crypto markets in the coming weeks.
Also read: Binance vs. SEC – Can Binance class action lawsuit open the door to summary judgment?
