- Bitcoin has seen a strong weekly close, with the price moving up to the key resistance at $28,600.
- Key macro data, including the US Consumer Price Index (CPI), US Producer Price Index (PPI), initial jobless claims, and US retail sales, could affect Bitcoin and crypto markets.
Key Macro Data to Impact Bitcoin and Crypto Markets
Bitcoin has seen a strong weekly close, moving straight up into the key resistance at $28,600. This puts the price just below the current key level that separates BTC from $30,000, after seven failed attempts. A powerful price move could also benefit the broader crypto market, as the rotation in altcoins has still failed to materialize. Bitcoin and crypto investors should keep an eye on key macro data in the week ahead.
US Consumer Price Index (CPI) and Federal Reserve
One of the most important macro metrics for the financial markets is the US Consumer Price Index (CPI), coming up on Wednesday, April 12. The CPI data is released at 8:30 am EST, and investors will be evaluating whether the Federal Reserve can push through another rate hike or hit the pause button in the face of stronger-than-expected falling inflation combined with the latest US labor market data.
The previous month’s CPI was 6.0% on a year-over-year (YoY) basis and 0.4% month-over-month (MoM). A miss on expectations is likely to push the Bitcoin price lower as markets price in a higher probability of another Fed rate hike in May.
FOMC Minutes and US Producer Price Index (PPI)
Later that day, on Wednesday, the FOMC minutes will be released at 2:00 pm EST. The meeting minutes will reveal more details on the Fed’s projections and considerations for the latest interest rate decision. On Thursday, April 13, both the US Producer Price Index (PPI) and initial jobless claims will be released at 8:30 am EST. The PPI MoM is forecasted to come in at 0.0% (previously -0.1%), while the core PPI MoM is forecast to rise again to 0.3% (previously 0.0%).
US Retail Sales and BTC Price
On Friday, April 14 at 8:30 am, the US retail sales will be released. March retail sales are expected to fall 0.5% MoM (previously -0.4%), while core retail sales are expected to fall 0.4% MoM (previously -0.1%). The data must be seen in the context of slowing economic growth momentum and fears of recession. At press time, the BTC price was trading at $28,258. A daily or even weekly close of Bitcoin above $28,600 would be extremely bullish.
In conclusion, key macro data, including the US CPI, FOMC minutes, US PPI, initial jobless claims, and US retail sales, could affect Bitcoin and crypto markets. A miss on expectations in the US CPI could push Bitcoin prices lower, while a meeting of expectations or exceeding them could send Bitcoin north. The meeting minutes and data from US PPI, initial jobless claims, and retail sales should also be considered in the context of slowing economic growth momentum and fears of recession.
Leave a Reply