Journalist
Posted:
- The cryptocurrency market is ready for an upcoming volatile week due to the publication of American inflation data.
- A testimony of Jerome Powell on monetary policy could also generate prices.
The cryptocurrency market seems to consolidate after the increased volatility last week. At the time of the press, Bitcoin (BTC) was negotiated at $ 96,865 after a slight drop of 0.06% in 24 hours, while the largest Altcoin Ethereum (ETH) had dropped 0.9% to negotiate $ 2,631.
Reduced volatility could end this week due to several key macroeconomic events that could influence traffic behavior.
US CPI data may have an impact on the cryptography market
Data from the American consumer price index (ICC) for January 2025 must be published on Wednesday. In December, the Total IPC increased to 2.9%, while the central IPC fell to 3.2%.
This peak played a role in the decision of the Federal Reserve to leave interest rates unchanged at 4.25% to 4.5%.
Market watch has foreseen That the ICP rate will fall to 2.8%, while the central rate will fall to 3.1%. This drop could trigger a positive economic perspective.
(Source: Marketwatch)
As inflation is assimilated, the federal reserve could return to a dominant position and resume interest rate reductions. This scenario may well increase for the cryptography market.
However, by the Fedwatch CME toolInvestors provide that the meeting of the Federal Open Market Committee (FOMC) in March will leave the interest rates unchanged.
Fed Chair to appear before the Congress
The president of the Federal Reserve, Jerome Powell, is expected to appear before the Chamber of Financial Services Committee and the Senate Banking Committee this week for his testimony to semi-annual monetary policy.
In his testimony, Powell will share a detailed perspective of the economy, inflation and rate drops.
IF Powell reports to soften the tightening of monetary policy and reduces inflation problems, it may well increase for the crypto. However, a bellicist position could cause a negative feeling.
As Ambcrypto reported, the president of the Fed recently made pro-Crypto comments after declaring that American banks can serve cryptographic customers if they can mitigate risks. If the chair makes similar comments when it appeared at Congress, this could increase the demand for digital assets.
Coinbase Q4 genuations
The American Coinbase exchange giant will publish its report on the results for the fourth quarter of 2025 later this week. If these results exceed expectations, this could help parts extend the gains after an annual gain of 142%.
Although the performance of the action does not directly have an impact on the prices of cryptocurrencies, it could strengthen confidence in the cryptography market and improve the feeling of the market. The positive feeling of the market is often a catalyst for price gains.
At the time of the press, the index of fear and greed fell to 43, showing a neutral feeling. This could lead to the stagnation of cryptocurrency prices until buyers or sellers intervene.
