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- The crypto news arena will likely witness volatile assets amid expected US events this week.
- With Fed officials’ speech and housing data, investors are watching key economic data.
Crypto market participants are watching how key economic data, set for release this week, will impact the market. The rising anticipation is based on the crypto market’s close tie with the US economy. Every economic event in the US can influence the crypto market’s trajectory, as CNF discussed earlier.
Here are the key US economic economic events set to occur this week.
US Celebrates Presidents Day
The US is celebrating the birth anniversary of its first US President, George Washington, today, February 17. Due to the celebration, all major exchanges in the US, including NYSE and Nasdaq, will remain closed for the day.
In the past, the crypto market experienced a slight decrease in trading volume during US Presidents Day. This happens as many traders and investors take the day off, leading to lower liquidity and potentially higher price volatility.
Traders actively monitoring the market and looking for price fluctuations can capitalize on this opportunity to enter the market. However, it’s important to note that the impact also depends on the specific crypto and market conditions at the time.
The Federal Reserve Speech
The market is also anticipating key US Federal Reserve (Fed) speeches this week. On Monday, February 17, Federal Reserve President Patrick T Harker and a Fed Board of Governors member Michelle Bowman will give their speeches.
On February 18, Federal Reserve Governor Michael Soloman Barr, San Francisco Federal Reserve President Mary C Daly, and Christopher J Waller will also give talks.
Moving on, Fed Vice-Chairman Philip Jefferson and Federal Reserve President Alberto Musalem, St. Louis, will give their talks on Thursday, February 20. Adriana Kugler, a Fed Board of Governors member, will deliver her speech the next day, February 21. Barr and Jefferson will give their second speeches of the week on February 21.
These talks would likely provide clues about the Fed’s interest rate plans. As noted in our earlier post, the Fed has communicated fewer rate cuts in 2025. This is due to persistent signs of inflation and resilience in the economy.
US Building Permits Report
Another key event set for this week is the US Building Permits data on Wednesday. Essentially, the US Building Permits index measures the current demand in the real estate market and estimates the future performance of the construction industry.
Simply put, the US Building Permits index gauges the strength of the national housing market and the overall economy. In December, the index dropped from 1.49 million to 1.48 million. There are forecasts that the index will drop to 1.45 million, hinting at an upcoming economic stagnation.
Similarly, the Housing Starts data, which measures the number of new projects that enter the construction process, is also projected to decline. The Housing Starts index increased from 1.29 million to 1.499 million in December. However, the consensus is that the index will decrease to 1.39 million.
These projections, if held, can work against the US dollar in the short term since bearish real estate activity usually accompanies low economic activity. This could lead to rising interest in cryptocurrencies like Bitcoin (BTC).
