{"id":7301,"date":"2025-01-13T07:16:50","date_gmt":"2025-01-13T07:16:50","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=7301"},"modified":"2025-01-13T07:16:50","modified_gmt":"2025-01-13T07:16:50","slug":"how-will-crypto-markets-react-in-big-week-for-us-inflation-data","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=7301","title":{"rendered":"How Will Crypto Markets React in Big Week for US Inflation Data"},"content":{"rendered":"
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Crypto markets spent the past week in retreat, with more than $300 billion leaving the digital asset sector. The weekend traded flat, but there was a minor spike in activity and a subsequent price correction on Monday morning in Asia.<\/p>\n

Moreover, several key inflation reports are due in the US this week, which could impact central bank monetary policy. This will be the final set of CPI and PPI data before the Jan. 29 Federal Reserve meeting, observed the Kobeissi Letter.<\/p>\n

Last week, the Consumer Sentiment index reflected<\/a> a rise in inflation expectations which was consistent with the price trends within the ISM Services PMI report. This may have impacted high-risk assets such as crypto and tech stocks, which corrected heavily.<\/p>\n

Economic Events Jan. 13 to 17<\/h2>\n

Potential reacceleration in inflation led investors and analysts to voice concerns that the Fed may pause rate reductions in the first half of the year. Additionally, Fed Governor Michelle Bowman said that inflation has risen \u201cuncomfortably above\u201d its long-term target \u201cwhile still presenting stubborn upside risks.\u201d<\/p>\n

December\u2019s Producer Price Index (PPI) report is released on Tuesday, reflecting input prices for producers and manufacturers. This data measures the costs of producing consumer goods, which directly affects retail pricing and is viewed as a signal of inflationary pressures.<\/p>\n

Another key inflation indicator, December\u2019s Core CPI report, is due on Wednesday. The Consumer Price Index is a measure of the average change over time in the prices paid by consumers for a market basket of consumer goods and services.<\/p>\n

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\u201cThe Fed is widely expected to pause its rate-cutting cycle at its next meeting at the end of the month, but firmer-than-expected CPI data could push back market projections for further easing even later in the year,\u201d wrote<\/a> Reuters on Jan. 12.<\/p>\n<\/blockquote>\n

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Key Events This Week:<\/p>\n

1. December PPI Inflation data \u2013 Tuesday<\/p>\n

2. December CPI Inflation data \u2013 Wednesday<\/p>\n

3. December Retail Sales data \u2013 Thursday<\/p>\n

4. Philadelphia Fed Manufacturing Index \u2013 Thursday<\/p>\n

5. December Housing Starts data \u2013 Friday<\/p>\n

6. Total of 7 Fed speaker events\u2026<\/p>\n

\u2014 The Kobeissi Letter (@KobeissiLetter) January 12, 2025<\/a><\/p>\n<\/blockquote>\n