Three Crypto Market Trends to Watch This Week

Crypto markets could face turbulence ahead with a busy week looming on the United States economic calendar, primarily due to a pivotal Federal Reserve interest rate decision.

Wednesday, June 12 is drawing significant attention as it marks the U.S. central bank’s interest rate policy decision. Yet, it’s expected that the Federal Reserve will maintain interest rates at their current levels following robust May jobs data.

It’s highly probable that policymakers will keep rates within the range of 5.25% to 5.5% for the seventh consecutive meeting. Additionally, they may reconsider the number of rate cuts planned for the year, given the varied economic indicators they are assessing.

Schedule of Economic Events from June 10th to 14th
June 12 is slated to be quite hectic with the unveiling of core CPI (consumer price index) reports. These figures serve as a pivotal gauge of inflation within the economy, wielding substantial influence over the Federal Reserve’s monetary policy deliberations, such as interest rate tweaks.

An uptick in the CPI signals growing inflation, typically prompting the Fed to consider raising or maintaining interest rates. With the year-on-year CPI holding steady at 3.4%, it’s likely the central bank won’t adjust rates this week.
This year, Bitcoin prices have shown a notable correlation with CPI data, with higher-than-expected CPI dampening Bitcoin sentiment, while lower-than-expected CPI has boosted it.

On Thursday, June 13, the core Producer Price Index (PPI) reports will be published. These reports gauge the average fluctuations in selling prices received by domestic producers of goods and services, serving as a significant supplementary inflation gauge for FOMC policymakers.

The initial rate reduction is anticipated to occur during the central bank’s September policy assembly, which marks its last session prior to the November 5 presidential election, according to analysts.

Effect on the Crypto Market
The Fed’s rate decision is probably already priced into crypto markets, as it’s expected rates will stay unchanged. Mid-week might see some volatility, but sideways movement is expected to persist.

Altcoins might suffer as Bitcoin dominance stays high, delaying the possibility of an altseason. Crypto trader ‘Emperor’ discussed the market state with his 390,000 followers on X on June 9th.

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