The cryptocurrency market braces for a significant week as key U.S. inflation indicators take center stage.
Both the Consumer Price Index (CPI) and Producer Price Index (PPI), critical metrics for gauging inflation and Federal Reserve policies, are set to be unveiled. Investors are particularly keen to see how these figures might influence the ongoing rally in Bitcoin and altcoins.
With the CPI data due on December 11, analysts expect a slight increase in headline inflation to 2.7%, while core inflation, which excludes energy and food, may ease to 3.2%. The following day, PPI figures are expected to remain steady. These metrics will likely weigh heavily on market sentiment, particularly as robust labor data last week – showing 227,000 jobs added in November – has already shifted expectations for monetary policy.
Bitcoin recently smashed past the $100,000 barrier, hitting an all-time high of $103,900. The surge has been attributed to renewed confidence in crypto-friendly policies following U.S. election results. Prominent analysts foresee further gains, with some projecting a near-term target of around $113,000. Large-scale Bitcoin purchases by whales, including a recent $2 billion spree, signal heightened interest from institutional players.
The bullish sentiment has also invigorated the altcoin market. Activity in regions like South Korea, where altcoins dominate trading volumes, underscores their growing appeal. Historical trends favoring a strong fourth quarter for crypto further fuel optimism that the rally will persist.
As inflation data looms, traders are watching closely to see if the crypto market’s momentum can withstand potential economic headwinds. Despite the possibility of short-term corrections, the overall outlook remains upbeat, with Bitcoin and altcoins poised for further breakthroughs.
With the U.S. Securities and Exchange Commission (SEC) already greenlighting spot Bitcoin and Ethereum ETFs, attention is now turning to the next wave of crypto-backed exchange-traded funds.
European banking giant UniCredit is preparing to offer its professional clients a new investment product linked to BlackRock’s spot Bitcoin ETF (IBIT), according to a report by Bloomberg.
As crypto markets navigate another week of volatility and shifting sentiment, traders are increasingly turning their attention to emerging altcoins and high-momentum tokens.
Connecticut has officially distanced itself from government adoption of digital assets like Bitcoin. On June 30, Governor Ned Lamont signed House Bill 7082 into law, placing sweeping restrictions on how the state and its agencies can engage with cryptocurrencies.