Following Donald Trump’s election victory, the crypto market is experiencing great activity. In particular, the rise in institutional interest has become a major factor supporting the market’s upward trend. This week, there are important macroeconomic events such as US PCE inflation, FOMC minutes, and Q3 GDP data. Investors are eagerly following the impact of these developments on asset prices.
PCE Inflation and FOMC Minutes
Investors are now focusing on US economic data and the minutes of the FOMC policy meeting on November 27. The Federal Reserve is expected to give signals on interest rate policy. However, a possible interest rate cut in December is among the most talked about topics in the market.
The FOMC minutes will provide clues about whether the Federal Reserve will deviate from its 2% inflation target. Elon Musk’s efforts to reduce federal spending by the Department of Government Efficiency are also among the details to watch closely this week. The minutes will shape investors’ expectations for interest rate policy.
GDP Data and Inflation Expectations
Second estimates of US third-quarter GDP growth are critical to the market. Initial estimates had indicated that the growth rate had slowed from 3% to 2.8%. These figures, to be released on Wednesday, will provide a clearer picture of the health of the US economy.
On the inflation front, Wednesday’s PCE inflation report is notable. Monthly inflation is likely to rise by 0.2%, with the annual rate rising to 2.3%. This will increase pressure on the Federal Reserve’s interest rate policy. Core PCE inflation is expected to rise to 2.8%, while the monthly change is expected to remain steady at 0.3%.
Impacts on Crypto and Traditional Markets
Macroeconomic data has the potential to affect traditional financial markets as well as the crypto market. Uncertainties in the Federal Reserve’s interest rate policy will directly impact both investor sentiment and market direction. As the crypto market continues to rise, the impact of this data on Bitcoin and other digital assets is a matter of great curiosity.
As we reported at Kriptokoin.com, the expectation that the Trump administration will adopt a crypto-friendly approach is increasing optimism in the market. However, investors should be cautious in this process and follow macroeconomic dynamics carefully. This week’s data will mark the beginning of a new era in both crypto and traditional financial markets. All eyes are now on how investors will react to these developments.
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