The cryptocurrency market is gearing up for a crucial week, marked by major events that could influence investor sentiment and market trajectory. With Bitcoin recently hitting an all-time high, anticipation is building as key inflation data and various developments unfold. These events, ranging from Federal Reserve announcements to block chain updates, are set to influence market dynamics in the coming days.
Meanwhile, inflation data carries weight after Federal Reserve Chairman Jerome Powell The testimony indicates possible rate cuts, but the timing remains uncertain, sparking discussions in the cryptocurrency market. Powell's remarks to the Senate Banking Committee suggest that rate cuts could be coming soon, pending sustained inflation of 2%.
Market expectations move from projections of multiple cuts at the beginning of the year to a forecast of the first cut in June, which will total a reduction of percentage points by the end of 2024. In addition, Powell emphasizes the need to avoid recession, indicating a cautious approach towards policy normalization as the economy recovers.
Key events to watch this week
US Consumer Price Index (CPI) data
The United States Consumer Price Index (CPI) February data, crucial to the Federal Reserve's assessment of inflation, will be released on March 12. In particular, cryptocurrency market investors are awaiting information on the Fed's future policy, as annual CPI inflation fell to 3.1% in January, slightly exceeding forecasts.
Furthermore, annual core inflation in January remained stable at 3.9%, above expectations. Although there was a cooling trend in January compared to December, the CPI remains above the Federal Reserve's 2% target, indicating continued inflationary pressure in the economy.
US Producer Price Index (PPI) data
On Thursday, March 14, USA. Producer Price Index (PPI) will be released, which will influence the Federal Reserve's potential rate cut decisions. In January, the PPI rose 0.3%, marking the largest increase since August 2023.
On the other hand, the core PPI, excluding food and energy, also saw a rebound of 0.5%, exceeding Wall Street expectations. With this in mind, crypto market enthusiasts will closely monitor the February CPI and PPI data to spot the possible move by the Federal Reserve with its upcoming rate cut plans.
Also read: Ethereum Layer 2 Ecosystem Surpasses $37 Billion, Leaving Competitors Behind
Ethereum Dencun Update
Cryptocurrency Market Investors Are Optimistic As Ethereum Eagerly Awaits Dencun update arrives on March 13. The upgrade promises to reduce transaction costs on Layer 2 networks, which is expected to boost activity and attract mainstream interest.
With an eye on a possible Ethereum price rally after the upgrade, anticipation is high among cryptocurrency market investors amid the looming uncertainties in the market. Additionally, optimism about Ethereum price is also increasing amid anticipation of the Ethereum ETF approval by the SEC.
Federal Reserve BTFP Expiration
Investor Anxiety in the Crypto Market Rises as March 2024 Marks the End of the Federal Reserve btfp, a fundamental plan to stabilize the American banking sector. Initiated in response to bank failures, its expiration on March 12 raises concerns about the impact on liquidity and potential effects on cryptocurrency prices.
Notably, the program, launched amid pandemic uncertainties, aimed to counter the fallout from bank failures and interest rate increases, signaling a crucial moment for market stability.
Meeting of creditors of FTX clients and non-clients
March 15th, ftx Digital convenes its inaugural meeting with client and non-client creditors, generating anticipation across the crypto market. The results of the deliberations are important for the cryptosphere and can influence investor sentiment and market stability.
Bottom line
In a week full of fundamental events, the cryptocurrency market is bracing for the impact of crucial factors. inflation data, poised to influence the Federal Reserve's interest rate decisions. Amid this anticipation, optimism surrounds the impending Ethereum Dencun upgrade, which is expected to improve scalability and reduce transaction costs.
Additionally, market participants remain vigilant as sell-off concerns intensify, with the upcoming expiration of the Federal Reserve's BTFP. As investors navigate these dynamic landscapes, attention is being drawn to the intersection of macroeconomic indicators, technological advances, and regulatory changes, which will shape the trajectory of the cryptocurrency market in the coming weeks.
Also read: Binance vs SEC: Can Binance Class Action Lawsuit Open the Door to Summary Judgment?
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