Bitcoin and cryptocurrency markets are facing another critical week. After reaching its annual high of $24,248 on February 2, 2002, the price is currently in a correction.
In particular, news about Kraken, the U.S. Securities and Exchange Commission, and an alleged ban on staking of cryptocurrencies by centralized U.S. exchanges triggered a setback in the cryptocurrency market last week. However, different statements from various members of the US Federal Reserve are also driving down the price of the crypto market.
On Friday, the U.S. Bureau of Labor Statistics also retroactively adjusted inflation rates released in recent months.
Bitcoin and cryptocurrency macro data for the week
This trading week, the most important event Scheduled for Tuesday. At 8:30 a.m. ET, the U.S. Bureau of Labor Statistics will release his January last month U.S. inflation data. CPI in December was 6.5%, down from 7.1% in November.
For January, experts now expect a drop of up to 6.2%.if the analyst expectation Confirmed or better results could continue the stock and crypto market rally that has been going on since the beginning of the year. SEC news and rumors of an operational chokepoint may be pushed into the background.
However, if the CPI beats expectations, the US Dollar Index (DXY) is likely to continue to rise, pulling risky assets such as crypto and bitcoin down by inverse correlation. And this risk cannot be underestimated.
Last Friday, February 10th, the last three months’ numbers were then revised upwards due to seasonal adjustments. This could be a warning sign that US inflation may be more ‘sticky’ than investors had previously thought and priced in.
The Dollar Index (DXY) is currently at an interesting point. After DXY was able to hold multi-year support at 101, the index is now at 103.7, just below the 103.9 resistance.
A daily close above this level could spell more doom for the crypto markets.With the daily RSI still hovering at 56, DXY could have more room to move higher. So watching DXY is very important this week as well.
Other dates for this week
On Wednesday, February 15, US retail sales for January will be released at 8:30 a.m. ET. These are considered important measures for calculating sentiment on household spending.
U.S. retail sales were in negative territory in November and December 2022. For the Christmas month of December, the -1.1% figure was well below the analyst’s forecast of -0.8%. However, for January, experts expect him to recover to 1.6%.
If US citizens’ buying mood does indeed improve, this could mean another bullish impulse for the stock and Bitcoin markets after the previous day’s CPI release.
On Thursday, February 16th, the US Producer Price Index (PPI) for January will be released at 8:30 am EST. Market experts expect an increase of 0.4% month-on-month. As recently as December, producer prices fell -0.5%, a steeper drop than analysts had expected.
If the PPI rises as experts expect, the US dollar could rise further, creating headwinds for the stock and cryptocurrency markets.
On the other hand, if PPI falls below market expert estimates, this could ease the pressure on Bitcoin and lead to a bullish price reaction in the crypto markets.
At the time of writing, Bitcoin price is at $21,752 and supported at the 200 EMA on the 4-hour chart.
![Bitcoin Price BTC USD](https://bitcoinist.com/wp-content/uploads/2023/02/BTCUSD_2023-02-13_10-05-05.png)
Featured image from iStock, chart from TradingView.com