This week’s economic calendar mainly includes two events that could imply volatility for financial markets. Consequently, this is something Bitcoin (BTC) and Cryptocurrency traders should be prepared for.
One of the expected events is the consumer price index (CPI or CPI) in the United States. This will come to light on Wednesday, November 13, which depending on its result could motivate or discourage demand in the markets.
According to the survey reported by the Investing explorer, Expectations are that the annual CPI of the financial power will remain at 2.4%. In addition, the annual core CPI, which measures the variation in consumer prices without counting food and energy due to their greater volatility, is expected to remain at 3.3%.
Therefore, if higher figures are established, the market could react negatively, since it would mean an increase in inflation. On the other hand, given a result equal to what was expected or, at best, lower, a positive response is likely, given that it would imply more liquidity.
The following table indicates the result of the annual CPI in the United States in recent months and its forecast.
An annual CPI in the United States is expected to be the same as last month. Fountain: Investing.
As an example of this, it is worth remembering that, given last month’s annual CPI, which was 2.4% instead of 2.3% as expected, bitcoin reacted downwards. However, due to catalysts that strengthened later, its price not only recovered, but is currently at all-time highs. This can be seen below.
BTC-USD price per day in the last month. Fountain: TradingView.
Therefore, it is crucial to keep in mind that The influence of economic calendar events is often temporary.. Therefore, these are factors that must be taken into account by investors short term.
More economic data could influence bitcoin volatility this week
The United States producer price index (PPI) will also be published on Thursday, November 14. This annual metric, which measures the change in prices of goods sold by manufacturers, is expected to rise from 1.8% to 2.3%, which could affect markets.
In addition, on that day the weekly applications for unemployment benefits in the United States and the gross domestic product (GDP) of Europe will be announced. If these reports show negative data, they could add to the discouraging outlook for the PPI.
However, bitcoin and cryptocurrency market could remain strong due to recent Donald Trump’s electoral victory in the United States. It plans to have national reserves in BTC and boost the industry behind it, which has influenced the rise of the market.
Furthermore, the new cut of interest rates Liquidity has increased in the country, which improves the scenario for the markets. And to this is added that historically bitcoin has entered a bullish phase in this period after the halvingan event that reduces its emission by half every four years.
With this in consideration, An event that may take on greater relevance this week may be Jerome Powell’s planned speech on Friday, November 15. As president of the Federal Reserve (Fed), Central Bank of the United States, he will reveal his outlook for the economy.
Therefore, Powell’s words as well as the result of the CPI in the United States, where the largest financial market in the world moves, are positioned as the most relevant events of the week.
Meanwhile, The price of bitcoin started the week rising to $82,000 (USD). In this way, it registered a new historical maximum, as has been doing in recent days since Trump’s victory, as reported by CriptoNoticias.
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