Decisive week for the US economy could impact cryptocurrencies
A busy week is shaping up in the United States, with several economic reports and speeches from the Federal Reserve (Fed) on the radar. Cryptocurrency markets are already facing some volatility this Monday (14), with Bitcoin rising almost 4% to US$64,900. This volatility could intensify in the coming days.
During this week, investors' focus will be on data on retail sales and industrial production. These data often serve as thermometers of economic conditions and possible inflationary trends.
Economic outlook for October 14-18
Last week, the Consumer Price Index (CPI) showed slightly higher-than-expected inflation, accompanied by an increase in unemployment benefit claims. This scenario generated even more uncertainty among investors about the direction of the US economy.
Additionally, Federal Open Market Committee (FOMC) minutes revealed that the majority of rate committee members support a 0.5% reduction in interest rates. The market already projects a 0.25% cut in November.
On Thursday, the September retail sales report will be released, revealing how much consumers are spending. This will be an important indicator of economic health and demand-side inflation.
On the same day, the Industrial Production report for September will also be released, which provides data on the volume of production in sectors such as manufacturing, mining and public services. These numbers are also indicators of economic growth and can impact markets, including cryptocurrencies.
On Friday, the market will closely monitor data on U.S. homebuilder confidence, along with housing sector reports. Additionally, several Fed representatives will give speeches throughout the week, including Christopher Waller, Mary Daly, and Adriana Kugler.
Expectations for the cryptocurrency market
Meanwhile, cryptocurrency markets have seen positive swings in the last 24 hours, with the total value of the crypto market estimated at US$2.36 trillion, up 1.7% daily. The weekend was marked by slight stability, with Bitcoin remaining within a narrow range.
On Monday morning (14), Bitcoin approached the $65,000 mark, but remains stuck in its seven-month sideways channel, currently close to the mid-range. Since the beginning of the month, the crypto market has fallen by around 5%, with no clear signs of a stronger upward movement, known as “Uptober”. Ethereum also operates at a high this Monday morning (14), around US$2,550.