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Bitcoin Is About to Volatile? 3 Factors That Could Impact the Cryptocurrency Market This Week
The weak PMI report from last week indicated a decline in manufacturing activity for the third consecutive month and a decrease in service activity for the first time in 11 months. In addition, the cryptocurrency market has stabilized a bit after the volatility following the debate between U.S. President Donald Trump and tech billionaire Elon Musk last weekend. However, some of those factors may return this week as important reports on inflation and consumer sentiment are released. In addition, the next round of trade negotiations between the US and China is expected to start on Monday, according to the Kobeissi Letter. Economic Event From June 9 To June 13 The most significant report of the week is the Consumer Price Index (CPI) for May, one of the two main measures of inflation. Policymakers and central bank investors closely monitor the CPI report as it reflects overall price trends in the economy and shapes sentiment. According to analysts, the CPI report for May is likely to confirm that price pressures remain high. The Producer Price Index report (PPI) for May will follow the CPI on Thursday, reflecting input costs for producers and manufacturers. PPI measures the production costs of consumer goods, ultimately impacting retail prices and is considered a leading indicator of inflationary pressure. The Michigan Consumer Sentiment Index for June and consumer inflation expectations will be released preliminarily on Friday. These reports summarize consumer confidence and long-term inflation expectations, which can impact spending and overall economic growth.
This is the last week of inflation data before the Fed meeting in June. According to the CME Fed Watch tool, there is a 99.9% chance that interest rates will remain unchanged at the central bank meeting on June 18. Prospects of the cryptocurrency market The cryptocurrency market has slightly fallen in the past 24 hours, with a 2% decrease in total market capitalization, down to $3.41 trillion during the Monday morning trading session in Asia. Overall, the market remains within a narrow range after recovering from the decline on Friday and stabilizing throughout the weekend. Bitcoin reached a peak of $106,000 in late trading on Sunday but fell slightly to $105,600 on Monday, June 9. Aside from the drop on Friday, the price has remained within this tight trading range since the end of May. Ethereum is holding steady around the price of $2,500, unable to break the resistance level above $2,700 but also not falling back to the level of $2,000. Most altcoins are generally moving sideways, with XRP and ICP seeing slight increases, while memecoins are experiencing a significant fall.