Cryptocurrencies are entering a critical week with US CPI inflation figures in focus. In addition, US Producer Price Index (PPI) data, another critical measure of inflation that the US Federal Reserve considers to decide on interest rate cut plans, will also be released this week. In particular, cryptocurrencies; investors are eagerly awaiting this figure as the Bitcoin and altcoin sector prepares for further rallies and potentially reach new records ahead.
Cryptocurrencies await US CPI Inflation figures
The crypto market has seen a strong rally recently and investors expect it to continue. With the strong labor market, investors are eagerly awaiting the upcoming US CPI inflation figures, as evidenced by the employment data released last week. In this context, the US added 227K jobs in November, above the market expectations of 220K. Moreover, the US unemployment rate rose to 4.2% in November from 4.1% in the previous month.
Economic indicators in particular tend to impact the broader financial market, let alone the cryptoassets space. However, inflation and other key figures play an important role in shaping market sentiment. Now investors are eagerly awaiting the US Consumer Price Index data, which will be released on Wednesday, December 11th. According to market forecasts, inflation is expected to come in at 2.7%, up from 2.6% in the previous month. At the same time, Core CPI, which excludes food and energy prices, is expected to decline to 3.2% from 3.3% in October. A higher-than-expected inflation figure usually leads to a reduction in traders’ risk-bet appetite.
PPI data will also be revealed
On the other hand, US PPI data, another important metric to measure inflationary pressure, will be released on Thursday, December 12. Market participants will keep a close eye on these figures to clarify the current inflationary pressures in the country. Notably, the market expects the US PPI figures to be unchanged from last month. The crypto market, along with Bitcoin and top altcoins, have recently recorded a solid rally, signaling strong market confidence. Notably, BTC recently broke the $100k mark, reaching its ATH of $103,900 last week. The rally started amid growing optimism towards pro-crypto regulations in the US following Donald Trump’s election win.
Now, despite expectations for hot US CPI inflation figures, the market expects the Bitcoin and altcoin rally to continue. While some analysts warn of short-term pullbacks in this bull phase, crypto assets are likely to set new records ahead. In addition, historical data shows that Q4 tends to be positive for financial markets, especially cryptocurrencies. It is worth noting that so far this year, the crypto market has performed similarly. Given this, economic indicators will not have much impact on investors’ sentiment.
What do analysts say?
In a recent analysis, top crypto market analyst Ali Martinez said that Bitcoin is poised to reach $112,926, citing technical trends. This has sparked optimism among investors, especially since BTC whales have been on a buying spree in recent days. “Bitcoin whale accumulation is going parabolic,” Martinez said in another post. He noted that whales recently bought 20,000 BTC worth about $2 billion. In addition, growing retail interest also points to a further rally ahead. In particular, Marathon Digital (MARA) accelerated its BTC buying strategy, attracting investors’ attention.
So far, altcoins have also followed Bitcoin’s northward run. Speaking about the altcoin season, CryptoQuant CEO and Founder Ki Young Ju showed his confidence in the altcoin market, citing the crypto trading trend in South Korea. In a recent X post, he said the following:
South Korea: The world’s second largest crypto market, where 93% of transactions are altcoins and only 4% are Bitcoin. Every season is altcoin season.
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