This will be important for Bitcoin and its price predictions this week

Despite inconsistent economic data from China, the EU and the US in the previous week, as well as continued uncertainty following the insolvency of crypto exchange FTX, key cryptocurrency Bitcoin (BTC) in particular was able to hold up relatively well. . Overall, the economic numbers continue to show the trend of relative strength in the US economy, while the rest of the world continues to weaken and struggle with the effects of persistently high inflation on businesses and private households. While U.S. consumer and producer price increases have recently picked up less sharply than expected by market experts, at least temporarily, Europe in particular still needs to pick up the slack, further pushing inflation rates above analysts’ forecasts and worsening economic expectations. This trading week, market participants can expect a condensed set of key indicators that are likely to have a relevant impact on all sectors of financial markets worldwide due to the Thanksgiving public holiday. The interpretation of the new economic data, especially the midweek one on Wednesday, thus plays a central role in the direction of the stock and crypto market. In addition, news about the status of Digital Currency Group (DCG), which in turn is the parent company of Grayscale Bitcoin Fund and the crypto trading and lending platform Genesis, should lead to an appreciation of the crypto market and thus also to adjusted price forecasts for Bitcoin and Co.

German producer prices at the start of the week

Monday 21 November 2022: At 08:00 (CET), market participants look at the development of producer prices (PPI) in the largest and most important economy in the euro area. The experts predict a fall from 2.3 percent in September to 0.9 percent in October. Should price increases actually fall so significantly below one percentage point, there would be a light at the end of the tunnel after months of sharp increases in producer prices and would be the first sign of a temporary calm for German companies. Such developments should encourage investors to believe that price explosions could have peaked in Europe as well. As a result, a recovery of the euro against the US dollar must be planned, which may also indirectly have a supportive effect on the crypto market.

If, on the other hand, the producer price index for Germany is above the reduced analysts’ expectations of 0.9 percent, this is a renewed strengthening of the US dollar. As in previous months, sustained dollar strength could result in increased selling pressure in the equity and crypto markets.

PMIs in Europe and US new orders and construction permits midweek

Wednesday 23 November 2022: This trading day is packed with relevant market data. In addition to early releases of PMI for manufacturing and service sectors in various European countries and headline indices for the Eurozone in the morning, investors are primarily looking at various economic data from the US in the afternoon. In addition to the number of building permits issued at After a fall of -0.5 percentage points in the last underlying period September, market experts expect a recovery of +0.1 percent for October. Once again, however, this positive news in the market could lead to price consolidations in the equity and crypto sectors, as it would give the US Federal Reserve more room for its plans for further interest rate hikes. The US dollar could then have completed its correction of the previous weeks so far, which should further add pressure on speculative assets such as the crypto reserve currency.

US consumer expectations and FOMC interest rate log close the eventful trading day

16:00 (CET) the latest survey results from the University of Michigan on inflation expectations for US consumers in the next five years will be presented. If private households assume that inflation will remain high until 2027, it would be an indication of a possible reluctance to consume by US households. In light of the hawkish stance at the latest press conference on November 3, it is doubtful whether the Fed, led by Jerome Powell, will be able to immediately create new monetary relief packages. The publication of the FOMC minutes from the last central bank meeting on Wednesday evening at 20.00 (CET) should provide further indications of the US central bank’s monetary policy orientation with regard to the upcoming interest rate decision by the Fed. Investors hope the minutes will give them new information about possible monetary policy adjustments by Fed Chairman Jerome Powell when the next interest rate decision is scheduled in December.

Release of ECB minutes provides insight into the position of the European Central Bank

Thursday 24 November: At 13.30 (CET) the top monetary watchdogs in the euro area will then present the transcript of the last central bank meeting on 27 October. Similar to the day before, media houses and market observers will try to distill conclusions about future monetary policy in Europe from the minutes of the previous ECB meeting. Any indication of a sustained expansion of monetary policy countermeasures aimed at inflation in the euro area could result in renewed price corrections in European equity indices. If, on the other hand, there are reasons for a less tough stance on the part of Ms Lagarde and the other monetary watchdogs, a small recovery movement cannot be ruled out. Investors are currently clinging to any indication of less restrictive monetary policy from central banks.

Want to buy cryptocurrencies?

Trade over 240 cryptocurrencies like Bitcoin and Ethereum on Phemex, the platform for beginners as well as experienced investors.

To the provider

The latest issues of BTC-ECHO Magazine

You may also be interested in this

Leave a Comment