CRYPTO MARKETS: POTENTIAL REBOUND FROM US INFLATION REPORTS?

This week is set to bring significant economic announcements in the United States, potentially influencing the cryptocurrency market.

A packed schedule awaits with crucial inflation data and the disclosure of minutes from the Federal Reserve’s March meeting on the agenda.

Investors are particularly keen on the forthcoming Core Consumer Price Index (CPI) data, a critical gauge of inflation trends.

The week also marks the beginning of the first-quarter earnings season on Friday, featuring financial results from major U.S. banks.

Economic Highlights

Wednesday will unveil the Core CPI data for March, serving as a vital measure of inflation alongside the Personal Consumption Expenditures (PCE) index.

The CPI, indicating the general price movement within the economy, plays a crucial role in shaping the Federal Reserve’s interest rate strategies. Market Watch predicts a slight decline in these figures.

The Producer Price Index (PPI) for March, scheduled for Thursday, provides insights into the cost pressures faced by producers and manufacturers. As a precursor to inflation, this index sheds light on potential changes in consumer pricing.

On Friday, April 12, we expect the release of the Michigan Consumer Sentiment Index and preliminary data on Consumer Inflation Expectations for April. These reflect monthly consumer confidence surveys, which are essential for forecasting spending trends, a significant component of the U.S. GDP.

The minutes from the Federal Reserve’s March meeting are due Wednesday, with several speeches from central bank officials also planned throughout the week. Given the ongoing concerns regarding inflation, these updates are eagerly awaited for insights into the Federal Reserve’s perspective.

Currently, the U.S. inflation rate stands at 3.2%, with predictions of an increase to 3.4% for March, potentially stirring market fluctuations.

Cryptocurrency Market Projections

The crypto markets have shown relative calm over the weekend, with the total market capitalization holding at $2.71 trillion as of Monday morning in Asia.

Bitcoin experienced a brief surge above $70,000 on Sunday but settled back to around $69,500, maintaining a stable trading range over the last day.

Ethereum has seen a modest 1% increase, reaching $3,420. Meanwhile, most altcoins have dipped into the red early this Monday, with Solana and Litecoin witnessing significant declines.

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