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Cryptocurrency Market Braces for Impact: Key Events to Watch This Week

source-logo  coinedition.com 11 December 2023 16:05, UTC

This week, cryptocurrency investors should gear up for a week of potential turbulence, with key economic events on the horizon. The spotlight is on December 12’s release of the U.S. consumer price inflation report, set to release at 8:30 a.m. EST for November. Expectations from the Cleveland Fed reveal a flat month to month rate.

Following this, Wednesday marks the Federal Reserve’s final meeting of the year, where market consensus leans towards maintaining the current monetary stance. On December 13, there will be Fed chair Jerome Powell’s press conference alongside PPI inflation data and details about FOMC rate hikes.

This week’s U.S. CPI inflation data is of particular significance, with growing anticipation among investors for a potential rate cut from the Federal Reserve. Projections suggest a slight 0.1% drop in the consumer price index for November, potentially influencing annual inflation rates.

If the data signals a cooling economy with an inflation rate of 3% or lower, investors may move towards riskier assets like cryptocurrencies.

The December meeting of the Federal Open Market Committee (FOMC) is poised to maintain interest rates at 5.25–5.50%, according to market expectations.

Any indications of a more dovish monetary policy could boost the demand for cryptocurrencies, as lower interest rates tend to make riskier assets more attractive to investors.

Investors are advised to brace for heightened volatility and remain vigilant this week, as these key events can trigger possible ups or downs depending on the data. As the market awaits this week’s numbers, the price of Bitcoin has plunged below $42,000.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.