With the sudden drop in the Bitcoin price and the governments’ sales of Bitcoin in recent weeks, the optimistic atmosphere in the altcoin market has been replaced by uncertainty. This week, markets are closely following critical economic data and important events. These data and events can significantly affect Bitcoin and altcoin prices. Here are the important developments for cryptocurrencies
Pay attention to US data for cryptocurrencies
Consumer Price Index (CPI) data, which is expected to be announced by the US Department of Labor on Thursday, July 11, is of critical importance for the cryptocurrency market. These data will be followed closely as they will shape the Federal Reserve’s interest rate hike plans and future monetary policy. At the same time, Producer Price Index (PPI) data, which is expected to be announced on Friday, July 12, will also provide information about inflation pressures in the USA. These CPI and PPI data are very important for the Federal Reserve’s interest rate decisions.
Federal Reserve Chairman Jerome Powell recently stated that there needs to be further confirmation on inflation trends, otherwise it will be difficult to ease monetary policy. Therefore, markets predict high volatility in Bitcoin and altcoins depending on upcoming economic indicators.
How will Jerome Powell’s statements affect the market?
Investors are closely following the seminars that Fed Chairman Jerome Powell will give to the Senate Banking Committee on July 9 and the House of Representatives Financial Services Committee on July 10. Powell’s views on monetary policy and economic conditions will influence market sentiment and investors’ strategies. If the inflation data to be announced is lower than expectations, the cryptocurrency market may see a strong rise as investor confidence increases. However, signals that inflation, which has been on a downward trend recently, is rising again may demoralize the market.
Where are we heading with Bitcoin and altcoins?
Recently, with the Bitcoin sales of the German and US governments, Mt. Uncertainties regarding Gox’s Bitcoin and Bitcoin Cash (BCH) refunds have created significant selling pressure in Bitcoin and altcoins. However, positive developments can also boost market morale. According to historical data from July, Bitcoin and other cryptocurrencies generally have a positive performance. While this historical data does not guarantee future performance, it supports investor confidence.
Additionally, the prospect of the Spot Ethereum ETF being approved in the US in mid-July could also trigger a rally in the altcoin sector. Despite this, inflation figures and other macroeconomic factors are expected to significantly impact Bitcoin and altcoin trading in the coming week. These developments provide guidance for investors who follow important developments in the cryptocurrency market. However, investment decisions should be based on personal analysis and risk management.
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