How Inflation Reports Could Shake Up Crypto Markets This Week

A high-stakes week is unfolding for both Wall Street and the crypto space as the U.S. prepares to release multiple inflation reports that could guide the Federal Reserve’s next move.

Following last week’s weaker job numbers, which confirmed that the labor market is slowing, crypto markets traded sideways over the weekend. Now, attention is shifting to economic data that could either trigger volatility or extend the current calm.

The Fed operates under two key objectives—keeping employment strong and maintaining stable prices. This week’s inflation readings will reveal how well the second mandate is holding up, just days before the central bank’s next meeting.

Economic Calendar: September 8–12

Key Events This Week:

1. 12-Month BLS Data Revision – Tuesday

2. August PPI Inflation data – Wednesday

3. OPEC Monthly Report – Thursday

4. August CPI Inflation data – Thursday

5. MI Consumer Sentiment data – Friday

6. MI Inflation Expectations data – Friday

The last…

— The Kobeissi Letter (@KobeissiLetter) September 7, 2025

Wednesday – Producer Price Index (PPI):

This report shows what businesses are paying for goods and services before they reach consumers. Since rising producer costs usually feed into consumer prices, PPI is a leading signal for inflation.

Thursday – Consumer Price Index (CPI):

CPI is the Fed’s most-watched inflation gauge. Covering everything from groceries to housing, this release provides a direct look at how much prices are squeezing consumers.

Friday – Consumer Sentiment & Inflation Expectations:

The University of Michigan’s survey will offer insight into how households feel about the economy and where they expect inflation to go. Strong expectations of higher prices often translate into reduced consumer spending.

Economists at Bank of America expect inflation to remain stubborn, predicting headline CPI could edge up to 2.9% year-over-year—the highest since July last year. Meanwhile, U.S. construction spending has slumped for six straight months, reviving concerns about a potential downturn.

Crypto Market Outlook

Inflation tends to put pressure on risk assets like crypto, since tighter household budgets and cautious investors reduce liquidity in the market.

• Bitcoin (BTC): Hovered just above $111,000, locked in a narrow range.
• Ethereum (ETH): Continued to orbit around $4,300, showing little breakout energy.
• Altcoins: Outpaced majors with stronger gains in XRP, Solana, Dogecoin, and Hyperliquid.

The total crypto market cap held near $3.91 trillion, with only slight upside during Asian trading on Monday.

The next few days could decide whether Bitcoin and other assets break out of consolidation—or face renewed downward pressure—depending on how inflation data shapes expectations for Fed policy.

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