The element with the greatest weight is the publication of the March CPI inflation numbers in the United States.
All data related to the US are in the top positions of importance for the crypto market. This is because it is the largest market for these digital assets. Added to this is that both Bitcoin and the rest of the currencies have a close correlation with Uncle Sam’s financial markets.
However, that is not to say that events in other developed countries are not important. In fact, many of the numbers announced in regions such as the European Union, the United Kingdom and Asian markets may have a notable impact on the pioneering digital currency.
Below are the facts that will have real influence on risk assets. By default, the impact of these on Bitcoin is almost identical, considering the aforementioned correlation between both types of financial assets.
The Macro Calendar Data That Could Move Bitcoin This Week
Since spot Bitcoin NFTs went public in January, the macroeconomic calendar has a greater influence on the cryptocurrency. The correlation between stock assets and the token is increasing as institutional capital flows into ETFs.
Consequently, macroeconomic movements already have a direct connection with BTC price movements. This week, as already mentioned, the most important item on the calendar is the status of the March consumer price index (CPI) in the United States. This indicator is decisive for monetary policy decisions at FOMC meetings.
For some context, the Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services. The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers. The all urban consumer group represents over 90 percent of the total US population. It is based on the expenditures of almost all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed, and retired people, as well as urban wage earners and clerical workers.
The next Committee meeting will be in early May and a cut in the federal funds rate is expected. This is subject to the state of inflation and hence the importance of this data. When the Fed lowers the benchmark rate, it becomes easier to borrow. That appears to be beneficial, but it could cause a possible spike in inflation.
Other important announcements have to do with the Canadian central bank’s monetary policy decision on Wednesday. “The good news is that monetary policy is working, and inflation has come a long way down. We’re not all the way back to target, and we know we need to finish the job,” said Bank of Canada senior deputy governor Carolyn Rogers in a speech before the Halifax Partnership last week. “But we have made a lot of progress. And so, it’s a good time to reflect on how the economy has changed in Canada and around the world and to think about what those changes mean for the future.”
On the same Wednesday, the president of the Chicago Fed, Austan Golsbee, will give statements. Likewise, the minutes of the recent FOMC meeting will be published. The following day, on Thursday, the ECB will announce monetary measures for the euro zone. These are the most important data on the macroeconomic calendar that could influence Bitcoin this week.
There are other relevant elements such as the producer price index in the US. Likewise, the consumer sentiment index for April will be released on Friday. This latest report is from the University of Michigan and is one of the classic indicators.
By Leonardo Perez
