Market Awaits US Economic Data for Bitcoin Rally to $72K Amid Stagnant Prices

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Will Positive CPI Data Catapult Bitcoin to $72K?
  • Bitcoin maintains a steady $61K, with XRP and Solana taking 5% weekly losses.
  • Upcoming U.S. economic events, including PPI and CPI, are poised to influence crypto market trends.
  • Market commentators expect positive CPI data to send Bitcoin to $72K.

The crypto markets have been stagnant since last week. Bitcoin, for instance, has been maintaining a steady position around the $61K price level, often experiencing price declines in the past week. Bitcoin’s subdued performance is also reflected in the broader market sphere. Altcoins like XRP and Solana are registering over 5% losses in their weekly performance. 

Now, crypto investors are turning their attention to this week’s U.S. economic calendar, which is packed with events that could significantly sway the markets. The widely followed X account “The Kobeissi Letter” recently compiled the economic events expected to unfold this week.

One of the key inflation reports on the horizon is the U.S. Producer Price Index (PPI), slated for release on Tuesday. This report is crucial as it provides insights into the input costs for producers and manufacturers, which is a direct precursor to consumer pricing. The PPI is often seen as an announcer of inflationary trends.

Meanwhile, insights into April’s Consumer Price Index (CPI) report will be unveiled on Wednesday. The Kobeissi Letter noted that if CPI inflation rises again this week, it would be the third consecutive monthly increase. 

Recently, a Conference Board survey revealed that a majority of U.S. CEOs anticipate only a single rate cut by the Fed this year. Of 136 CEOs surveyed, 31% expect no rate cuts, while 26% foresee two. 

The Kobeissi Letter observed that market expectations have settled on two rate cuts for the year, with the first anticipated in September. Meanwhile, the commentary highlighted the market’s fluctuating expectations. It noted that predictions have swung from six rate cuts to one and then back to two, all within four months.
As the financial markets await vital events in the U.S. this week, the cryptocurrency market is exhibiting modest signs of recovery. At press time, Bitcoin has risen by 1%, with other major cryptocurrencies like Ethereum also posting slight gains. Market commentators expect positive CPI data to send Bitcoin within the $67K and $72K range.

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