Bitcoin (BTC) and other altcoins are entering the second week of 2023 with an optimistic atmosphere. During this period, where fundamental macro indicators are at the forefront, the Fed’s statements and inflation data are among the most notable factors determining the market’s direction.
BTC and Altcoins Benefit from the Rise!
We have officially entered the second week of 2023, and the cryptocurrency market has revived with a new surge. As of the moment this article is being written, Bitcoin (BTC) has shown a 2% increase, managing to break above the critical resistance level of $17,200. Additionally, altcoins have also demonstrated significant growth in the last 24 hours, supporting this rally. Looking at the upcoming macro developments, it is anticipated that there will be quite important events for the cryptocurrency world this week.
As you follow on Kriptokoin.com, the positive movements seen in stock indices in Europe and the US have become a catalyst for this new rise in the cryptocurrency market. Now, let’s take a look at some key developments highlighted this week:
January 10: Federal Reserve Press Conference
- Fed Chairman Jerome Powell will provide more insights into monetary policy before the next interest rate decision on February 1.
- Powell signaled that interest rate hikes would continue in 2023. However, the Fed slowing down its rate hikes is seen as a positive development for the market.
- This situation may allow the market to breathe after last year’s correction and could limit potential major declines.
January 12: US CPI and Inflation Data
- The US Bureau of Labor Statistics will release inflation data for December 2022 on January 12. Analysts expect a 0.3% increase in core inflation.
- However, a decrease from 6.0% to 5.7% on an annual basis is anticipated. If these predictions materialize, the correction in the US Dollar Index (DXY) could widen further.
- This could contribute to the strengthening of both the stock and cryptocurrency markets. However, if consumer index figures come out higher than expected, this could signal negative news for the market.
What Do CPI Data Mean for BTC?
Bitcoin (BTC) started the year positively, gaining nearly $1,000 over the course of a week. This allowed the asset to rise above $17,000 for the first time in about a month. However, significant US announcements like the CPI data could affect BTC’s fluctuations this week. Particularly, if the US stock market rises, some analysts suggest that Bitcoin could head towards $20,000 with better-than-expected CPI figures. Past experiences show that Bitcoin reacts to sudden price movements. Therefore, the data to be announced on Thursday is critical for the entire cryptocurrency market.
US Consumer Confidence
- Following the inflation data, we will learn about US consumer confidence and household expectations on January 13, 2022.
- Michigan University will share consumer confidence data reflecting consumer optimism regarding US economic development. Household confidence for December 2022 was recorded at 59.7.
- Experts predict that consumer confidence for January could rise to 60.0. This data will directly influence the activity on Wall Street and subsequently the developments in the cryptocurrency market.
