4 US Economic Events Set to Impact the Crypto Market This Week

1. Consumer Price Index (CPI)

The US Consumer Price Index (CPI) release is on Wednesday, November 13. This is one of the crucial gauges of inflation-the motive for Federal Reserve policies and, by extension, the prices of cryptocurrencies.

• Recent Trends in CPI: At 2.4%, the city’s CPI for September was slightly lower than the 2.5% the previous month.
• Expected October CPI: Analysts expect headline inflation to fall 0.2% and core CPI, excluding food and energy, to decline 0.3%.

If the numbers are higher than expected, inflation could again be on the rise. This might keep the Fed off further rate cuts and take some of the steam off Bitcoin‘s rally, since high inflation prompts conservative economic policies.

2. Initial Jobless Claims

The weekly jobless claims report, set for Thursday, November 14, measures the number of new claims for unemployment benefits. This data is closely watched as a snapshot of economic health and job security.

• Last Report: Claims rose by 3,000 to 221,000.
• Why It Matters: Higher claims could hint at a weaker economy. A rise in jobless claims suggests fewer people are working, reducing consumer spending power.

Increased jobless claims may prompt the Fed to avoid rate hikes and could signal a potential recession. If jobless numbers remain stable or improve, confidence in riskier assets like crypto might grow.

3. Producer Price Index (PPI)

The Producer Price Index (PPI), coming on Friday, tracks price changes at the wholesale level. Rising PPI often signals that businesses face higher production costs, which can affect industries across the board.

• Impact on Crypto: A higher PPI can increase energy costs, impacting crypto mining expenses.
• October Prediction: Analysts are keeping an eye on the core PPI for a better view of non-energy price trends.

If the PPI rises, it could tighten mining profit margins, potentially slowing down Bitcoin and other proof-of-work-based crypto activities. A lower-than-expected PPI, however, would signal stable costs, likely benefiting the crypto market.

4. US Retail Sales

The US retail sales report, also set for Friday, is a measure of consumer spending and economic strength.

• September Retail Sales: Retail sales increased by 0.4%.
• October Forecast: Analysts predict a 0.3% rise.

That being said, strong retail sales hint at consumers spending, which is generally a sign of a healthy economy. If the report meets expectations or is greater, crypto may benefit from this, since investors have often viewed strong spending as indicative of confidence in riskier investments. Conversely, weak retail data could signal economic caution, likely reducing interest in crypto.

Summary Table

Bitcoin has shown resilience, trading near $80,808. This week’s economic data may shape its trajectory further.