Download App
iOS & Android

Crypto Market: PCE & Other Events To Watch Amid Fed Rate-Cut Speculations

As the crypto market braces for a pivotal week ahead, investors find themselves at the crossroads of economic uncertainty and market volatility. With a flurry of key events on the horizon, including crucial Fed speeches and economic data releases, stakeholders are closely monitoring developments that could shape the trajectory of both traditional and digital financial landscapes.

Economic Data, Fed Speeches, & Rate-Cut Dilemma

This week emerges as a critical juncture for investors, with a spotlight on various economic indicators and Federal Reserve communications. Notably, attention is focused on key data points such as the Personal Consumption Expenditures (PCE) index and GDP revisions, offering insights into the economic health of the United States and inflationary pressures.
On the other hand, upcoming speeches from various Federal Reserve officials like Atlanta Fed President Raphael Bostic and Fed Governor Chris Waller are also scheduled this week. The crypto market participants eagerly await these insights for indications regarding the Fed’s current position on their plans for rate cuts.
Meanwhile, the recent uptick in inflation, highlighted by January’s Producer Price Index (PPI) and Consumer Price Index (CPI) data, has sparked concerns and market reactions. The PPI saw a notable rebound, exceeding expectations, while the CPI revealed a higher-than-anticipated inflation rate.
Notably, these figures have implications not only for traditional financial sectors but also for the crypto market, as demonstrated by Bitcoin’s price movement post-CPI release.
Now, amid rising inflationary pressures, market sentiment hangs in the balance, with speculation rife regarding the Federal Reserve’s stance on interest rates. Despite earlier expectations of rate cuts, recent data suggests a shift in the Fed’s approach, prompting revisions in analysts’ predictions.
Goldman Sachs, for instance, now anticipates a more gradual rate-cut trajectory, reflecting the central bank’s cautious outlook. For context, Goldman Sachs Chief Economist Jan Hatzius has revised predictions, expecting four rate cuts this year instead of five, citing Federal Reserve signals and strong US economic data.
It’s worth noting that the decision to delay cuts until June stems from the need for further inflation and economic data collection, contrary to earlier expectations of a March cut. Notably, there remains a 25% risk of further delays, cautioned Goldman, as Fed officials aim to see inflation align with their 2% target.
With a 96% probability of unchanged interest rates according to the CME FedWatch Tool, market participants await the Fed’s decision with bated breath. This has weighed on the broader financial market sentiment, let alone the crypto market.

Crypto Market Resilience Amid Hovering Uncertainties

Despite the looming economic uncertainties, the crypto market has exhibited resilience, buoyed by factors such as increased Bitcoin ETF inflows and anticipation surrounding events like the Bitcoin Halving and Ethereum ETF launch. The fear and greed index, reflecting investors’ risk appetite, remains relatively high, underscoring continued optimism within the crypto community.
Both the Bitcoin and Ethereum prices have shown resilience lately, amid the growing anticipation of the crypto market enthusiasts. On the other hand, the significant inflow into the Bitcoin ETF also reflects the growing demand for crypto from the big Wall Street players.
However, as economic data takes center stage this week, its impact on trader sentiment cannot be understated. A bleak outlook could cast a shadow over market sentiment, potentially influencing investment decisions across both traditional and digital asset markets. As stakeholders navigate through this period of uncertainty, the importance of staying informed and agile in response to evolving market dynamics cannot be overstated.


All Comments

Recommended for you

  • BTC halving countdown only 1 day left

    According to Ouke Cloud Chain data, there is only 1 day and 17 hours left until the BTC halving countdown, which is expected to occur on 2024/04/20. The current block reward is 6.25 BTC, and after the halving, the block reward will be 3.125 BTC. There are currently 253 remaining blocks, the current network hashrate is 587.96 EH/s, the network mining difficulty is 83.95 T, and the average block time is 9.94 min.

  • The total open interest of BTC options is $21.24 billion, and the open interest of ETH options is $9.42 billion.

    According to Coinglass data, the nominal value of open BTC option positions on the entire network is $21.24 billion, and the nominal value of open ETH option positions is $9.42 billion.

  • CZ launches testnet course on Giggle Academy

    CZ, the former CEO of Binance, announced the test network course of the recently launched education project Giggle Academy. CZ shared a video clip on his X account, which involved a course in an installable Android software package (Apk).

  • After the Bitcoin halving, new mining output will be reduced from 900 to 450 per day

    According to HODL15Capital's monitoring, after the halving of Bitcoin, its newly mined output will be reduced from 900 coins per day to 450 coins per day. Based on the current price, purchasing all of these new outputs would cost approximately $28 million.

  • BTC breaks through $62,000, and the intraday decline narrows to 2.96%

    According to market data, BTC has broken through $62,000 and is currently trading at $62,008.36. The intraday decline has narrowed to 2.96%, and the market is experiencing large fluctuations, so please be prepared for risk control.

  • Tether issued USDT worth $437 million yesterday

    Tether issued $437 million worth of USDT on April 17 and redeemed $142 million worth of USDT (a net increase of 295 million USDT in circulation). Approximately $100 million worth of USDT was issued to an address starting with 0x5c (suspected to be a Bitfinex forwarding address), and approximately $81 million worth of USDT was issued to an address starting with 0x77 (suspected to be Bitfinex wallet address 1).

  • Ordinals founder confirms that the Runes protocol only hard-codes rune number 0

    On April 18th, Casey Rodarmor, the founder of Ordinals, stated during a Discord community meeting that the Runes protocol only hardcodes the 0th rune, which is "UNCOMMON•GOODS". The other nine token names are not hardcoded into the Runes protocol due to a lack of good ideas. According to Casey's previous plan, the Runes protocol will hardcode the first 10 runes, which are numbered 0-9.

  • Bitcoin dominance hits 3-year high as BTC price dip pressures altcoins

    Bitcoin scores an accidental multi-year high as BTC price volatility sends altcoins shooting lower.

  • Cointime April 23th News Express

    1. EigenLayer: Deposit limits for all LST tokens will be removed on April 16

  • 4 whales/institutions sold 31,683 ETH worth $106 million during the market drop

    According to Lookonchain data, during the market downturn, 4 whales/institutions sold 31,683 ETH ($106 million). Cumberland deposited 17,206 ETH ($57.3 million) to the exchange. 0xC3f8 deposited 7,976 ETH ($26.6 million) to Binance. 0x1717 deposited 4,000 ETH ($13.32 million) to the exchange. Alameda/FTX deposited 2,500 ETH ($8.33 million) to #Binance.