Crypto Market Rebound Hinges on US Inflation Reports this Week

This week, significant economic data releases in the United States may influence crypto markets, prompting speculation on potential rebounds.

The US economic calendar is packed with crucial events, including key inflation data and the release of minutes from the March Federal Reserve meeting.

Market participants are particularly focused on the upcoming Core Consumer Price Index (CPI) figures, as they serve as a leading indicator of inflation.

Moreover, the start of the Q1 2024 earnings season on Friday, featuring reports from leading banks, adds to the anticipation surrounding market movements.

Key Events on the Economic Calendar:

• Wednesday: Release of March Core CPI data, a pivotal indicator alongside the Personal Consumption Expenditures (PCE) for measuring inflation.
• Thursday: Publication of March’s Producer Price Index (PPI), offering insights into input prices for producers and manufacturers, with implications for retail pricing.
• Friday: Announcement of April’s Michigan Consumer Sentiment Index and preliminary Consumer Inflation Expectations reports, reflecting consumer confidence levels and long-term inflation views, which significantly influence spending and GDP contribution.

Furthermore, the minutes of the March Fed FOMC meeting on Wednesday, along with scheduled speeches by central bank officials, including Chair Jerome Powell, will provide additional insights into inflation dynamics.

Amidst an official inflation rate of 3.2%, with forecasts suggesting a rise to 3.4% for March, potential market volatility looms large.

Crypto Market Assessment: Over the weekend, crypto markets remained relatively stable, with total capitalization standing at $2.71 trillion in Asia on Monday morning.

Bitcoin experienced a brief surge surpassing $70,000 on Sunday then retraced to $69,500, maintaining tight trading conditions over the past 24 hours, but today, during Europe morning hours the price surged to $72.700 making a 4% gain according to tradingview.com.

Ethereum witnessed a 5% increase to $3,620 at the time of reporting, while altcoins starting to show strength while the bitcoin price slightly pulls back to $72.400 at the time of writing.

In summary, the trajectory of crypto markets in the coming days may hinge significantly on the outcome of key economic reports from the United States, but the bullish start of the week is a good sign for the bulls showing the market strength with a potential big move to new highs.