The crypto market is awaiting the release of US inflation data as recent employment data has raised hopes for a Federal Reserve interest rate cut. This week, the release of the US Consumer Price Index (CPI) can significantly impact the Federal Reserve’s decisions on interest rate reductions. Recent employment data indicates a cooling job market, boosting investor optimism. Bitcoin temporarily crossed the $100,000 mark after this data release, reflecting positive market sentiments. Investors are now waiting for key events this week to gain insights into Federal Reserve monetary policies. Forecasts suggest that the CPI inflation rate for January may decrease by 0.3%, while the annual inflation rate is likely to drop to 2.8%, below the previous month’s 2.9% rate. These data are crucial for future Federal Reserve decisions on interest rates. If inflation decreases, the Federal Reserve may adopt a more lenient approach, potentially benefiting the crypto market. Apart from the CPI, the US Producer Price Index (PPI) data will be released on Friday, February 13, which is important for evaluating interest rate policies. It is predicted that this index may increase by 0.3% in January, higher than the previous month’s 0.2% growth. Additionally, remarks from Jerome Powell, the Federal Reserve Chairman, in Congress will be another significant event this week. His first appearance in Congress since July can provide further insights into future monetary policies. Finally, if inflation rates exceed expectations, the likelihood of widespread selling in financial markets, including crypto, will increase. Although recent market fluctuations have made many investors cautious, analysts remain optimistic about Bitcoin’s future. Some experts have predicted that the price of Bitcoin may initially drop to $90,000 and then reach a new historic peak.
