The coming week will be packed with economic data and reports, with important inflation figures set to be released. But will the release of this data have an impact on the cryptocurrency market?

Cryptocurrency markets remained flat over the weekend following last week’s decline, with total market capitalization falling to $2.38 trillion.

This week’s economic calendar could lead to more volatility as key inflation data will be released along with a series of Federal Reserve speeches that could indicate the direction of future monetary policy.

Economic data, Fed policy and market expectations

On Tuesday, the core Producer Price Index (PPI) report will be released. This index shows input prices for producers and manufacturers. It measures the cost of making consumer goods and directly affects the pricing of retail products.

It is seen as a leading indicator of future inflationary pressures and is therefore a key signal for predicting the direction of the Consumer Price Index (CPI) next month.

Wednesday will see the release of the core CPI report for April, one of two main indicators used to assess inflation levels, the other being personal consumption expenditures (PCE).

The Consumer Price Index (CPI) directly determines the price trend in the economic system, consumer consumption behavior and corporate market expectations. It also has a direct impact on the Federal Reserve's interest rate decisions.

"If the consumer price index (CPI) inflation rate continues to rise this week, it will be the third consecutive month of increase," Kobeissi Letter noted.

Including a speech by Fed Chairman Jerome Powell on Tuesday, there will be a total of 12 speaking events by Federal Reserve officials this week.

Most U.S. CEOs predict the Federal Reserve will cut interest rates just once this year, according to a recent Conference Board survey of company CEOs’ expectations.

Of the 136 CEOs surveyed, 31% said they do not expect any rate cuts this year, while 26% expect two. "At the same time, the market has already priced in two rate cuts this year based on the base case, with the first expected to take place in September," Kobeissi reported.

It is worth noting that Elon Musk criticized the Federal Reserve over the weekend and compared it to the Monopoly board game. He specifically cited a description of the in-game bank in the game's rules, noting that the bank can never fail and can print new money when necessary.

Cryptocurrency Market Outlook

Cryptocurrency markets in Asia were relatively calm on Monday morning, with most major currencies seeing little movement.

At the time of writing, the Bitcoin price is around $62,675, up slightly from yesterday. However, the asset is still in a downtrend since the same time last week.

Ethereum has failed to recover to $3,000 levels after falling below that level on May 10 and remains bearish in the short term at the time of writing, with a price of $2,900.

Altcoins are mainly in the red, with Solana, Dogecoin, Avalanche, and Near Protocol seeing large declines.

Conclusion

This week, cryptocurrency markets will be closely watching the release of U.S. inflation data and speeches from Federal Reserve officials, key events that could have a significant impact on monetary policy expectations. Although the performance of Bitcoin and other major cryptocurrencies in Asian markets is temporarily stable, market expectations are to fluctuate with the release of economic data. Investors need to remain vigilant and pay attention to economic indicators and central bank dynamics to grasp the short-term and long-term market trends.

In addition, Elon Musk's criticism of the Federal Reserve highlights the public's concern about the transparency and accountability of monetary policy, which may further promote interest in decentralized finance (DeFi). Although the market may fluctuate in the short term, in the long run, technological innovation and market demand will continue to drive the growth and evolution of the cryptocurrency industry. #美国通胀 #加密市场