Pay Attention to 4 Critical Developments for Cryptocurrencies in the New Week!

Cryptocurrencies had a quite volatile week. Although the week started with analysts' predictions of Bitcoin reaching a new peak and expectations of a rise, the thoughts that the Federal Reserve (Fed) would pursue a more hawkish policy after the strong US employment data announced on Friday pulled the market down. Amidst this volatility, investors will closely monitor the critical events of this week.

Cryptocurrencies are waiting for the US Consumer and Producer Price Index (CPI-PPI) data

Cryptocurrency market players will closely monitor the release of the May Consumer Price Index (CPI) on Wednesday, June 12, which is one of the most important indicators measuring the level of inflation in the United States. Along with this data, core CPI data will also provide the market with a clear picture of the state of inflation. In addition, another important metric used to analyze inflation trends in the United States, the Producer Price Index (PPI) and core PPI data, is expected to be released on Thursday, June 13.

These two data points could play a significant role in shaping the Fed's future stance on interest rate policies. Last week's release of US employment data falling short of expectations had unsettled the market. This week's inflation figures will provide more insight into how the Fed will combat inflation pressures, affecting both the cryptocurrency market and the general financial sector.

FOMC interest rate decision and Jerome Powell's speech are expected

After the May inflation data, which will be announced on Wednesday, June 12th, the Federal Open Market Committee (FOMC) interest rate decision and the press conference of Fed Chairman Jerome Powell will take place on the same date. While the market generally expects the Fed to keep its policy interest rate unchanged, the Fed's statements will shed light on the central bank's potential future moves. Previously, cryptocurrency market followers were expecting at least two interest rate cuts this year. While the expectation for a cut was strong in November, last week's employment data has made this situation uncertain.

In light of this, the Fed's statements will play a key role in the future performance of the cryptocurrency market this week. Apart from these important events, the US monthly budget data will also be released on Wednesday this week. In addition, the preliminary consumer confidence index data, expected to be released on June 14, will provide insight into market trends for the cryptocurrency market.

Following the European Central Bank's (ECB) decision to cut interest rates by 25 basis points last week, optimism had risen in the cryptocurrency market. In fact, many market players were expecting the Fed to take a similar step in the coming days. However, stronger-than-expected employment data negatively affected market sentiment and led to a major sell-off in the cryptocurrency market last week. Economic data and critical events to be announced this week seem likely to significantly impact the future of the cryptocurrency market.

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