Once again, a critical week is approaching for the Bitcoin and cryptocurrency market. The price of Bitcoin has since achieved an all-time high of $24,248 on February 2. It is presently consolidating after reaching that level.
The cryptocurrency market fell last week because of reports about Kraken, the SEC, and centralized US exchanges’ possible ban on crypto-staking.
However, the United States Federal Reserve officials’ contradictory remarks are another factor that is driving down Bitcoin prices.
On Friday, the US Bureau of Labor Statistics retroactively adjusted inflation figures from previous months. This revived worries of “sticky” inflation and enhanced the likelihood of higher interest rates for a longer length of time.
Weekly Bitcoin and Crypto Macro Data
The most significant happening of this trading week is going to take place on Tuesday. The Bureau of Labor Statistics will release January inflation data at 8:30 a.m. Eastern Standard Time (EST).
The Consumer Price Index fell to 6.5% in December, from 7.1% in November. For the month of January, analysts now anticipate a drop to 6.2%.
The stock and cryptocurrency markets’ year-long rally may continue if the expectations of experts are met or surpassed. It’s possible that the news about the SEC and the speculations about Operation Choke Point will be put in the background.
If CPI beats expectations, the U.S. Dollar Index (DXY) may rise due to its unfavorable correlation with risk assets like crypto and Bitcoin. And the possibility of this happening should not be discounted in any way.
On Friday the 10th of February, the data for the previous three months were subsequently revised upward owing to seasonal adjustments. This resulted in a higher total.
As a result, investors may be underestimating the “stickiness” and eventual magnitude of US inflation. At the moment, the Dollar Index (DXY) has arrived at a point that is both fascinating and significant.
The DXY maintained its multi-year support around 101 and is trading at 103.7, just below resistance at 103.9. If this level is broken on a daily basis, the cryptocurrency market might be in much more trouble.
The daily relative strength index (RSI) is now at only 56, indicating that the DXY may have more opportunities to climb higher. Because of this, keeping an eye on the DXY index is still of utmost significance this week.
The Week’s Other Events
On Wednesday, February 15, at 8:30 a.m. Eastern Standard Time, US retail sales for January will be revealed. They are taken into consideration to be a significant metric for determining the emotion towards household expenditure.
In November and December of 2022, retail sales in the United States were in the red in both months. While market experts anticipated a loss of 0.8% for the month of December, the actual loss was 1.1%.
However, according to the forecasts of the analysts, the month of January should see an improvement of 1.6%. In November and December of 2022, retail sales in the United States were in the red in both months.
Market analysts predicted -0.8% for December, while the fact was -1.1%. However, according to the forecasts of the analysts, the month of January should see an improvement of 1.6%.
After the announcement of the CPI the day before, if the purchasing sentiment among U.S. residents genuinely improves. Both the stock market and the Bitcoin market might be about to see another significant impulse as a result of this.
The January US Producer Price Index (PPI) will be released on Thursday, February 16 at 8:30 a.m. Eastern Standard Time. The forecasts of market analysts are for a month-over-month gain of 0.4%.
Producer prices declined by 0.5% in December, more than economists predicted. If the PPI is lower than market experts’ predictions, Bitcoin’s pressure would ease and the cryptocurrency market would rise.
The 200 exponential moving average on the 4-hour chart supported Bitcoin’s price at $21,752 at publishing.