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The crypto market is bracing for potential volatility as investors look ahead to several key economic data points this week. According to Wu Blockchain, several crucial triggers, including Fed Chair Jerome Powell's testimony and CPI data, could shape market sentiment in the coming days.
On Feb. 11, Federal Reserve Chairman Jerome Powell will deliver his semi-annual monetary policy testimony to the House Financial Services Committee. Powell's statements are likely to shed light on the Fed's stance on interest rates, inflation and the economic outlook, which could impact risk assets such as cryptocurrencies.
Powell is also scheduled to appear before Congress on Tuesday and Wednesday, and investors will be watching for hints about future monetary policy moves.
Tomiwabold OlajideInvestors are awaiting a slew of economic data this week, including the U.S. CPI data, or the consumer price index, report for January, which is scheduled to be released on Feb. 12. On Wednesday, at 8:30 a.m. ET, the core inflation data will be released, which will offer insights about the health of the U.S. economy. This will be followed by the producer price index and initial weekly jobless claims on Thursday, and then retail sales data on Friday.
The markets will be closely watching these developments, which could set the tone for Bitcoin, Ethereum and altcoins in the near term.
Crypto market braces for impact
Investors will be paying close attention to economic data going out this week, especially fresh inflation numbers. A higher-than-expected CPI report might dampen prospects for an early rate cut, putting pressure on the cryptocurrency market, while a lower-than-expected figure could fuel a risk-on rally.
The cryptocurrency market was flat on Monday, with several digital assets posting mixed price action. Bitcoin returned above $97,000 after falling to lows of $94,730 in Sunday's session. Currently, BTC trades within the broader range of $90,000 to $100,000, with recent movements narrowing to a range between $95,000 and $100,000.
Ethereum reached a low of $2,522 on Sunday but has since climbed back to $2,645. SOL, Monero, Litecoin, SUI and a few other coins were up at press time. Meanwhile, XRP, BNB, Stellar (XLM), PEPE and other cryptocurrencies saw losses.
The Crypto Fear & Greed Index, which measures market sentiment for Bitcoin and other cryptocurrencies, has remained in fear since the past week, with an average score of 44 out of 100.
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