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- Investors are keenly awaiting the appearance of Powell before the Economic Club of Washington on Tuesday as there could be clarity on where rates are headed.
- This week, there will be the presentation of the advance publication of the consumer price indices (CPI) for Germany for the month of January.
The crypto market reacted marginally after the US Federal Reserve and the European Central Bank (ECB) adjusted interest rates by just 25 basis point and 50 basis point respectively. Regardless, Bitcoin failed to break into a resistance level of $24,200 due to a possible resurgent US dollar index (DXY).
This week could be a very critical period for crypto investors as multiple price determining events are scheduled to take place. This ranges from the expected appearance of Fed Chairman Jerome Powell in the press, the advance release of the latest inflation figures (CPI) for Germany as well as the release of new figures of the initial jobless claims in the US. Finally, the University of Michigan will publish consumer expectation and US consumer confidence.
Jerome Powell’s press conference
Investors are keenly awaiting the appearance of Powell before the Economic Club of Washington on Tuesday as there could be clarity on where rates are headed. Investors also expect more clarification on his comments after the 25 basis-point hike last week.
Commenting on the reaction of the stock and crypto market pending the press conference, Sinead Colton Grant, global head of investor solutions at BNY Mellon Wealth Management stated.
I think the market is in a reassessment mode, and that’s why you see markets pull back a little bit, certainly post the jobs report, and we’re seeing a little bit more today… I think you will likely see an attempt to perhaps dampen some of the reaction to the statements in the press conference.
Inflation data from Germany and US labor market data in focus
This week, there will be the presentation of the advance publication of the consumer price indices (CPI) for Germany for the month of January. It can be recalled that the previous percentage point declined to 8.6. Experts, however, expect to see an increase to 9.2 for the reporting Month. This could also be a major challenge as the rising consumer prices may be far from coming to a reasonable point. It is important to note that the bearish reaction of the stock market in Germany could negatively affect the euro. This could allow the US dollar to gain more strength. In this case, the Bitcoin price consolidation in the last few trading days could be expanded.
US consumer confidence and consumer expectations to close the week
This week, official figures of consumer expectations and confidence for households for the month of January would be released. It can be recalled that the US Household Consumer Confidence surged to 62.0 in the January 13 advance release. If the current release discloses a surge in consumer expectations and consumer confidence amid these economic times, there could be an improvement in sales development at Amazon and Apple.
Crypto investors are also expecting the survey data from the University of Michigan this week. Strong data could lead to a bullish price development of S&P500 and the Nasdaq technology index. This could also have a huge effect on the crypto market.
